Here are the budgets of Brandon Surgery Center for the most recent historical quarter (thousands of dollars?):

Static Flexible Actual

Number of surgeries 1,200 1,300 1,300

Patient Revnue $2400 $2600 $2535

Salary Expense 1200 1300 1365

non-salary expense 600 650 585

profit $600 $650 $585

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

A. Explain how each amount in the flexible budget was calculated (Hint: Examine the static budget to determine the relationship of each budget line to volume.)

B. Determine the variances for each line of the profit and loss statement, both in dollar terms and in percenage terms. (Hint: Each line has a total variance, a volume variance, and a price varianc (fro revenues) and mananagment variance (for expenses)

C. What do the Part b results tell Brandons managers about the surgery centers operations for the quarter?