Budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars):

Number of Surgeries - Static 1,200

Flexible 1,300

Actual 1,300

Patient revenue - Static $2,400

Flexible $2,600

Actual $$2,565

Salary expense - Static 1,200

Flexible 1,300

Actual 1,300

Non-salary expense - Static 600

Flexible 650

Actual 585

Profit - Static $600

Flexible $650

Actual $ 585

The center assumes that all revenues and costs are variable and hence tied directly to patient volume.

I need assistance with the following:

a.How is each amount in the flexible budget calculated.

b.How do I determine the variances for each line of the profit and loss statement, both in dollar terms and in percentage terms. Each line has a total variance, a volume variance, and a price variance (for revenues) and management variance (for expenses).

c.What do the part B results tell Brandon's managers about the surgery center's operations for the quarter?