ABC Physician Corporation
			For Month Ended June 30, 2003
Note: 20000 HMO lives at $20 per member/ per month
		Static		Flexible		Actual
Assumptions
HMO/Visits		17000		19500		19500
FFS visits		35000		33000		33000
Total		52000		52500		52500
Revenue
HMO/Premiun Revenue		$340,000		$400,000		$400,000
FFS visits		1,750,000		1,650,000		1,485,000
Total		$2,090,000		$2,050,000		$1,885,000
Costs
Variable
HMO visits		$425,000		$487,500		$624,000
FFS visits		1,050,000		990,000		1,056,000
Total		$1,475,000		$1,477,500		$1,680,000
Total Contribution Margin		$615,000		$572,500		$205,000
Fixed Costs		$600,000		$600,000		$600,000
Profit/Loss		$15,000		$(27,500)		$(395,000)
1) Calucate Profit Variance
2) Calculate Revenue Variance
3) Calculate Price Variance
4) Calculate Cost Variance
5) Calculate Cost Volume Variance
6) Calculate Management Variance
7) What other information would be useful?
8) How do you interpret these variances?