PLS ANSWER ALL QUESTIONS!!
1. Which type of budget (statistics, revenue, expense, operating) explicitly includes volume projections in terms of visits, admissions, etc? 2. Which type of budget (statistics, revenue, expense. operating) directly estimates expected profit/loss for a given budget period? 3. Which type of budget (static, flexible, actual) incorporates changes in actual volume of service realized for a given budget period? 4. Interpret the meaning of a profit variance of $50,000 (negative). 5. Interpret the meaning of a revenue variance of $100,000 (positive). 6. With respect to cost variance, what is the difference between the volume variance and management variance components? 7. Identify two factors that could contribute to a negative cost variance (actual costs greater than expected costs) for a healthcare organization. 8. identify two factors that could contribute to a positive revenue variance (actual revenues greater than expected revenues) for a healthcare organization. 1. Consider the following summary budget data from 2020 for Grand Strand Medical Center (in millions of dollars): Static Budget Flexible Budget Actual Results Revenues $4.7 $4.8 Costs $4.1 $4.1 $4.2 Profit S06 $0.7 50.3 545 A. Calculate and provide an interpretation of the profit variance. B. Calculate and provide an interpretation of the revenue variance. C. Calculate and provide and interpretation of the cost variance. D. Calculate and provide an interpretation of the component volume and price variances on the revenues side. E. Calculate and provide an interpretation of the component volume and management variances on the cost side. F. Overall, how would you evaluate the budgetary performance of Grand Strand Medical Center for 2020? Explain. 2. Consider the following three budgets for Minute Clinic during 2020: Static Budget Flexible Budget Actual Results Visits BCBS Patients 36,000 40,000 40.000 Highmark Patients 54,000 60,000 60,000 Total Patients 90,000 100,000 100,000 Revenue BCBS Patients $ 900,000.00 $ 1,000,000.00 $ 1,120,000.00 Highmark Patients $ 1,080,000.00 $ 1.200,000.00 $ 1,080,000.00 Total Revenue $ 1,980,000.00 $ 2.200,000.00 $ 2,200,000.00 Expenses Variable Labor $ 1.200,000.00 $ 1,333,333.33 S 1,400,000.00 Supplies $ 150,000.00 $ 166,666.67 $ 225,000.00 Total Variable $ 1,350,000.00 S 1,500,000.00 $ 1,625,000.00 Fixed $ 500,000.00 $ 500,000.00 $ 500,000.00 Total Expenses S 1.850,000.00 $ 2,000,000.00 $ 2,125,000.00 Contribution Margin S 630,000.00 $ 700,000.00 $ 575,000.00 Net Profit $ 130,000.00 $ 200,000.00 $ 75,000.00 A. Calculate and provide an interpretation of the profit variance. B. Calculate and provide an interpretation of the revenue variance (total). C. Calculate and provide and interpretation of the cost/expense variance (total). D. Evaluate the overall budgetary performance for Minute Clinic in 2020. What factors (identify at least two) that contributed to this overall level of performance
