1. Across the board 5% raise for all staff
2. Reimbursement rates & utility expenses will remain the same
3. Based on projected patient volume increases due to several new housing developments nearby, the following changes will occur:
   1. The volume is expected to increase by 1200 visits for Type A policies and by 800 for Type B policies
   2. There will be a need for an additional MA on staff

(The MA will have a starting salary of $27,000 and does not qualify for the 5% raise at this point)

3. Office supplies are expected to increase by $500
4. Medical supplies are expected to increase by $1,000

5. Fixed Costs _______________

   Total Costs _______________

   Expected Profit _______________ (5 points)

   You are such a great manager that a 2^nd clinic has just hired you!

   You notice that everything in this clinic is different, except the number of employees. They also deal with different insurance companies and have much lower reimbursement rates!

   It is now the end of the 1^st year and you want to make sure that this 2^nd clinic is on track to meet their financial goals going forward.

   In order to do this, you have decided to perform a variance analysis on the Expense Budget:

   (When actual expenses are higher than expected expenses, your variance will be negative)

   Expenses

   Variable EXPECTED ACTUAL VARIANCE Office Supplies 5,000 5,500 __________

   Medical Supplies 15,000 25,000 __________

   TOTAL 20,000 30,500 __________ (5 points

   Fixed

   Salary: 1 Physician 120,000 120,000 __________

   Salary: 1 Clinic Manager 65,000 65,000 __________

   Salary: 1 RN 67,000 77,000 __________

   Salary: 1 MA 30,000 35,000 __________

   Salary: 1 receptionist 25,000 25,000 __________

   Utilities 100,000 100,000 __________

   TOTAL 407,000 422,000 __________ (5 points)