7. Newport Clinic projected the following budget information for Fiscal Year 2019. (5 points each, 10 points total) Total Fee for Service (FFS) Visit Volume: 90,000 visits Payer Mix: Blue Cross 40% United Health 60% Reimbursement Rates: Blue Cross $25 per visit United Health $20 per visit Variable Costs: Labor 48,000 total hours $25.00 per hour Supplies 100,000 total units $1.50 per unit Fixed Costs (overhead, plant, & equipment) $500,000 Newport Clinics actual results for Fiscal Year 2019 are shown below: Total Fee for Service (FFS) Visit Volume: 100,000 visits Payer Mix: Blue Cross 40% United Health 60% Reimbursement Rates: Blue Cross $28 per visit United Health $18 per visit Variable Costs: Labor 50,000 total hours $28.00 per hour Supplies 150,000 total units $1.50 per unit Fixed Costs (overhead, plant, & equipment) $500,000

a. Construct Newport Clinics static operating budget for Fiscal Year 2019.

b. Construct Newport Clinics actual operating results for Fiscal Year 2019.