Amal Clinic has to branches one in Jeddah and the other is in Makkah. It shows the following budget data for 2018:

Total FFS Visit Volume Payer Mix: 90,000 visits

Jeddah 40%

Makkah 60%

Reimbursement Rates:

Jeddah SR 25 per visit

Makkah SR 20 per visit

Variable Costs:

Labor 48,000 total hours

Supplies 100,000 total units

Resource Input Prices:

Labor SR 25.00 per hour

Supplies SR 1.50 per unit

Fixed Costs (overhead,

plant, and equipment) SR 500,000

Actual Result

Total FFS Visit Volume Payer Mix: 100,000 visits

Jeddah 40%

Makkah 60%

Reimbursement Rates:

Jeddah SR 28 per visit

Makkh SR 18 per visit

Resource Inputs:

Labor 50,000 total hours

Supplies 150,000 total units

Resource Input Prices:

Labor SR 28.00 per hour

Supplies SR 1.50 per unit

Fixed Costs SR 500,000

Instruction:

a. Prepare Amal Clinics operating budget for 2018.

b- Calculate revenue (total, price, and volume) variances.