Assignment 1. Be sure you understand how Exhibits 2 and 3 were prepared. Do you agree with Mr. Hawkins' analyses so far? 2. Besides changes in the number of visits and the payment rate per visit, what are the other reasons why actual re- sults might have diverged from budget? 3. Calculate the variance associated with each of the reasons you gave in Question 2. How, if at all, might this in- formation be used in managing the group practice? 4. How might BMA's approach to physician compensation have affected the group's financial performance for the year? 5. What should Dr. King do about the bonuses? What changes, if any, should she make to the group's budgeting and control system