Question
Here are 2011 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars): Flexible Flexible Static (Enrollment/Utilization) (Enrollment) Actual Budget
Here are 2011 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):
Flexible Flexible
Static (Enrollment/Utilization) (Enrollment) Actual
Budget Budget Budget Results
$425 $200 $180 $300
a. What does the budget data tell you about the nature of Wendovers patients:Are they capitated or fee for service?(Hint:See the note to Exhibit 8.7.)
Calculate and interpret the revenue variance:
Calculate and interpret the volume variance:
Calculate and interpret the price variance:
Calculate and interpret the enrollment variance:
Calculate and interpret the utilization variance:
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