Chelsea Clinic's ACTUAL Budget information is listed below. Use this information to calculate the flexible budget.

Total FFS Visit Volume		100,000	visits
Budgeted FFS Visit Volume		90,000	visits
Payer Mix Budgeted :
	Blue Cross	40%
	Highmark	60%
Reimbursment Rates Budgeted:
	Blue Cross	$25	per visit
	Highmark	$20	per visit
Payer Mix Actual :
	Blue Cross	40%
	Highmark	60%
Reimbursment Rates Actual:
	Blue Cross	$28	per visit
	Highmark	$18	per visit

Chelsea Clinic's ACTUAL Budget information is listed below. Use this information to calculate the flexible budget.

Total FFS Visit Volume		100,000	visits
Budgeted FFS Visit Volume		90,000	visits
Budgeted Variable Costs
Variable Budget - Volume :
	Labor	48,000	total hours
	Supplies	100,000	total units
Variable Budget - Prices:
	Labor	$ 25.00	per hour
	Supplies	$ 1.50	per unit
Actual Variable Costs
Actuals - Volume:
	Labor	50,000	total hours
	Supplies	150,000	total units
Actuals - Prices
	Labor	$ 28.00	per hour
	Supplies	$ 1.50	per unit
Fixed Costs (overhead, plant and equipment)		$ 500,000.00

2a. When calculating the flexible budget, we will use the actual volume but the budget rates. Based on this information, calculate the flexible budget for revenue.

Choice: $1,456,000

Choice: $2,500,000

Choice: $1,985,000

Choice: $2,200,000

2b. When calculating the flexible budget, we will use the actual volume but the budget rates. Based on this information, calculate the flexible budget for total costs (include the fixed proportion).

Choice: $1,000,000

Choice: $1,980,000

Choice: $2,000,000

Choice: $3,000,000