Consider the following 2012 data for Newark General Hospital (in millions of dollars):

Revenues: Simple Budget=$4.7; Flexible Budget $4.8; Actual Results=$4.5

Costs: Simple Budget=4.1; Flexible Budget=4.1; Actual Results=4.2

Profit: Simple Budget=0.6; Flexible Budget=0.7; Actual Results=0.3

A) Calculate and interpret the two profit variances.

B) Calculate and interpret the two revenue variances.

C) Calculate and interpret the two cost variances.

D) How are the variances related?