Please complete the following steps. 1. Create a flex budget for this clinic and then complete the total table to the right (with Total Variance, Revenue Variance, etc) 2. If you would have performed according to the flex budget, what would the operating margin % for the clinic have been? Answer 3. Please create a budget explanation to describe the general factors that you see that caused the budget variances. Revenue Variance Cost Variance Mgmt Variance Budgeted $ per Visit Original (Static) Budget Actual Results Flex Budget Total Variance Volume Price Volume Mgmt Labor Fixed Supplies Volume Statistics Office Visits Static Budget Assumption 7,000 8,000 Revenue Net Rev Per Visit $ 90.00 630,000 680,000 $ $ $ $ 35.00 20.00 6.50 7.00 Operating Expenses Nursing Salary & Benefits Medical Assistant Salary & Benefits Clerical Staff Salary and Benefits Medical Supplies Marketing Depreciation Expense Utility Expense Admin Expenses Total Operating Expense Operating Income Expense per Visit Expense per Visit Expense per Visit Expense per Visit Total Expense Total Expense Total Expense Total Expense 245.000 140,000 45,500 49,000 50,000 30,000 20,000 30,000 609,500 20,500 400,000 80,000 56,000 64,000 50,000 30,000 22,000 30,000 732,000 (52,000) Operating Margin 3.3% -7.6% % Please complete the following steps. 1. Create a flex budget for this clinic and then complete the total table to the right (with Total Variance, Revenue Variance, etc) 2. If you would have performed according to the flex budget, what would the operating margin % for the clinic have been? Answer 3. Please create a budget explanation to describe the general factors that you see that caused the budget variances. Revenue Variance Cost Variance Mgmt Variance Budgeted $ per Visit Original (Static) Budget Actual Results Flex Budget Total Variance Volume Price Volume Mgmt Labor Fixed Supplies Volume Statistics Office Visits Static Budget Assumption 7,000 8,000 Revenue Net Rev Per Visit $ 90.00 630,000 680,000 $ $ $ $ 35.00 20.00 6.50 7.00 Operating Expenses Nursing Salary & Benefits Medical Assistant Salary & Benefits Clerical Staff Salary and Benefits Medical Supplies Marketing Depreciation Expense Utility Expense Admin Expenses Total Operating Expense Operating Income Expense per Visit Expense per Visit Expense per Visit Expense per Visit Total Expense Total Expense Total Expense Total Expense 245.000 140,000 45,500 49,000 50,000 30,000 20,000 30,000 609,500 20,500 400,000 80,000 56,000 64,000 50,000 30,000 22,000 30,000 732,000 (52,000) Operating Margin 3.3% -7.6% %