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QUESTION 5 Here are the budgets of Brandon Surgery Center for the most recent historical quarter: The center assumes that all revenue and costs are
QUESTION 5 Here are the budgets of Brandon Surgery Center for the most recent historical quarter: The center assumes that all revenue and costs are variable and hence tied directly to patient volume. Determine the variances for each line of the profit and loss statement, both in dollar terms and in percentrage terms. (Hint: Each line has a total variance, a volume variance, and a price variance (or revenues) or management variance (for expenses).) When entering your figures, for dollars, do not include decimal points. For percentage, round to 2 decimal points. For example, if the answer is $2,000,000, write 2000000 . If the percent is 5.654% write 5.65 . If negative, write -2000000 or -5.65 (for percent). Patient Revenue a.Dollar total variance $ ? b. \%Total variance ? c. Dollar volume variance $ ? d. \% volume variance? e. Dollar price variance $ ? Salary Expense a.Dollar total variance $ ? b. \%Total variance ? c. Dollar volume variance $ ? d. \% volume variance? e. Dollar management variance $ ? f. \% Management variance? Nonsalary Expense a.Dollar total variance $ ? b. \%Total variance ? c. Dollar volume variance $ ? d. \% volume variance? e. Dollar management variance $ ? f. \% Management variance? Profit a.Dollar total variance $ ? b. \%Total variance ? c. Dollar volume variance $ ? d. \% volume variance? e. Dollar management variance $ ? f. \% volume variance
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