Static Budget Flexible Budget Actual Results 50,000 Assumptions: FFS visits Capitated visits Total 46,000 85,000 131,000 50,000 80,000 130,000 40 42 FFS rate Capitated PMPM 3 3 12.00 12.50 Variable costs per visit Fixed costs 13.00 550,000 530,000 Variances Amount Percent INCOME STATEMENT: Revenues: FFS Capitated Total Revenue 2,050,000 1,840,000 255,000 2,095,000 Costs: Variable: FFS Capitated Total 598,000 1,105,000 1,703,000 Contribution Margin Fixed Costs 392,000 550,000 480,000 Profit (158,000) REQUIRED: a. Using the Information from the Assumptions for the static budget and actual results, calculate the amounts for the flexible budget and actual income statement. b. Determine the total variance for each item in amount and percentage terms. c. Explain what the variances reflect for management of the center