8. Chelsea Clinics actual and budget information for 2020 is listed below, we will use this to calculate the flexible budget. Chelsea had actual visits of 100,000 patient visits.

Payer Mix Budgeted :

Blue Cross 40%

Highmark 60%

Reimbursment Rates Budgeted:

Blue Cross $25 per visit

Highmark $20 per visit

Payer Mix Actual :

Blue Cross 40%

Highmark 60%

Reimbursment Rates Actual:

Blue Cross $28 per visit

Highmark $18 per visit

When calculating the flexible budget, we will use the actual volume but the budget rates. Based on this information, calculate the flexible budget for revenue.

Choice: $1,456,000

Choice: $2,500,000

Choice: $1,985,000

Choice: $2,200,000