Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars): Number of Surgeries Patient Revenue Salary Expense Nonsalary Expense Profit Static Flexible Actual 1,200 1,300 1.300 $2,400 $2,600 $2.535 1,200 1,300 1.365 600 650 585 $ 600 $ 650 $ 585 The center assumes that all revenues and costs are variable and hence tied directly to patient volume. After determining the variance for each line of the profit and loss statement, both in dollar terms and in percentage terms, what do the results tell Brandon's managers about the surgery center's operations for the quarter? Select all of the answers that are correct (you may select more than one). a. The increase in salary expense was solely due to the increase in volume. b. The management dollar variance in Nonsalary Expense was favorable by $65,000 which helped to offset the unfavorable management dollar variance in Salary Expense. c. The flexible budget does not provide much further information in this example. d. The logical conclusion of the variance analysis is that the center's managers must pay close attention to per procedure revenues and particularly labor salary rates. If the trend of lower per procedure revenues and higher salary rates continues, the center could be facing rough financial times ahead. e. Realized profit was $15,000 (2.5%) lower than expected. However, if management variables had been in line with the original forecast, increased volume alone would have produced a $50,000 (8.33%) profit surplus (as compared to budget). The fact that variables under management control led to a $65,000 (10.83%) shortfall produced the overall profit shortfall. f. Revenue was lower than expected due to a smaller amount of surgeries performed than the budget