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the actual results reported in Exhibit 6.3, assume the results reported below: Refer to Carroll Clinic's 2012 operating budget, contained in Exhibit 6.2. Instead of

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the actual results reported in Exhibit 6.3, assume the results reported below: Refer to Carroll Clinic's 2012 operating budget, contained in Exhibit 6.2. Instead of Carroll Clinic: New 2012 Results Volume (Number of visits) the center's Opera 11,000 Payer A Payer B Total 12,000 23,000 1. Reimbursement (per Visit) Payer A Payer B $ $ 95 95 Il Costs Variable Costs: Supplies $ 350,000 Fixed Costs: Labor Overhead Total $1,000,000 500,000 $1,500,000 IV. Forecasted P&L Statement Revenues: Payer A $1,045,000 Payer B Total revenues Variable costs Fixed costs Total Profit 1,140,000 $2,185,000 $ 350,000 1,500,000 $1,850,000 $ 335,000 a. What are the profit, revenue, and cost variances based on the simple c. What are the pront, revenue, and cost variances based on the flexible a d. Interpret your results. In particular, focus on the differences between the lan analysis here and the Carroll Clinic Illustration presented in the chapter. 6.4 Again refer to Carroll Clinic's 2012 operating budget, contained in Exhibn 6.2. Instead of the actual results reported in Exhibit 6.3 or listed in Problem 6.3. Fundamentals of Ne 6.2) budget? b. Construct Carroll's flexible budget for 2012. assume these results: Carroll Clinic: New 2012 Results 1. Volume (Number of visits) Payer A 8.500 Payer B 11,000 Total 19,500 I. Reimbursement (Per Visit) Payer A $ Payer B 90 80 $ $ 320,000 MIL. Costs Variable Costs: Supplies Fixed Costs: Labor Overhead Total $1,050,000 550,000 $1,600,000 IV. Forecasted P&L Statement Revenues: Payer A $ 765,000 Payer B 880,000 Total revenues $1,645,000 Variable costs $ 320,000 Fixed costs 1,600,000 Total $1,920,000 Profit ($ 275,000) What are the profit, revenue, and cost variances based on the simple (Exhibit A Construct Carroll's flexible budget for 2012. Interpret your results. In particular, focus on the differences between the What are the profit, revenue, and cost variances based on the flexible budget? variance analysis here and the Carroll Clinic illustration presented in the chapter and in Problem 6.3. Commanhi Chapter 6: Planning and Budgeting 6.2) budget? the actual results reported in Exhibit 6.3, assume the results reported below: Refer to Carroll Clinic's 2012 operating budget, contained in Exhibit 6.2. Instead of Carroll Clinic: New 2012 Results Volume (Number of visits) the center's Opera 11,000 Payer A Payer B Total 12,000 23,000 1. Reimbursement (per Visit) Payer A Payer B $ $ 95 95 Il Costs Variable Costs: Supplies $ 350,000 Fixed Costs: Labor Overhead Total $1,000,000 500,000 $1,500,000 IV. Forecasted P&L Statement Revenues: Payer A $1,045,000 Payer B Total revenues Variable costs Fixed costs Total Profit 1,140,000 $2,185,000 $ 350,000 1,500,000 $1,850,000 $ 335,000 a. What are the profit, revenue, and cost variances based on the simple c. What are the pront, revenue, and cost variances based on the flexible a d. Interpret your results. In particular, focus on the differences between the lan analysis here and the Carroll Clinic Illustration presented in the chapter. 6.4 Again refer to Carroll Clinic's 2012 operating budget, contained in Exhibn 6.2. Instead of the actual results reported in Exhibit 6.3 or listed in Problem 6.3. Fundamentals of Ne 6.2) budget? b. Construct Carroll's flexible budget for 2012. assume these results: Carroll Clinic: New 2012 Results 1. Volume (Number of visits) Payer A 8.500 Payer B 11,000 Total 19,500 I. Reimbursement (Per Visit) Payer A $ Payer B 90 80 $ $ 320,000 MIL. Costs Variable Costs: Supplies Fixed Costs: Labor Overhead Total $1,050,000 550,000 $1,600,000 IV. Forecasted P&L Statement Revenues: Payer A $ 765,000 Payer B 880,000 Total revenues $1,645,000 Variable costs $ 320,000 Fixed costs 1,600,000 Total $1,920,000 Profit ($ 275,000) What are the profit, revenue, and cost variances based on the simple (Exhibit A Construct Carroll's flexible budget for 2012. Interpret your results. In particular, focus on the differences between the What are the profit, revenue, and cost variances based on the flexible budget? variance analysis here and the Carroll Clinic illustration presented in the chapter and in Problem 6.3. Commanhi Chapter 6: Planning and Budgeting 6.2) budget

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