8.3 Here are the budgets of Brandon Surgery Center for the most recent his- torical quarter (in thousands of dollars): Number of Surgeries Patient Revenue Salary Expense Nonsalary Expense Profit Static 1,200 $2,400 1,200 600 Flexible 1,300 $2,600 1,300 650 $ 650 Actual 1,300 $2,535 1,365 585 $ 585 $ 600 The center assumes that all revenues and costs are variable and hence tied di- rectly to patient volume. Explain how each amount in the flexible budget was calculated. (Hint: Examine the static budget to determine the relationship of each budget line to volume.) Determine the variances for each line of the profit and loss statement, both in dollar terms and in percentage terms. (Hint: Each line has a total variance, a volume variance, and a price variance [for revenues] and management variance (for expenses).) What do the Part b results tell Brandon's managers about the surgery center's operations for the quarter