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8. Kirklin Clinics actual and budget information for 2020 is listed below, we will use this to calculate the flexible budget.

Total FFS Visit Volume 100,000 visits

Budgeted FFS Visit Volume 90,000 visits

Payer Mix Budgeted :

Blue Cross 30%

Highmark 70%

Payer Mix Actual :

Blue Cross 30%

Highmark 70%

Reimbursement Rates Budgeted:

Blue Cross $25 per visit

Highmark $20 per visit

Reimbursement Rates Actual:

Blue Cross $28 per visit

Highmark $18 per visit

Variable Costs

Resource Inputs

Labor 50,000 total hours

Supplies 100,000 total units

Resource Input Prices

Labor $25.00 per hour

Supplies $1.00 per unit

Fixed Costs (overhead, plant, and equipment) $ 500,000.00

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.

$2,615,000