2007 data for a hospital in New York:
Static Budget flexible Budget Actual Results
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revenues $4.7 $4.8 $4.5
Costs $4.1 $4.1 $4.2
Profits $0.6 $0.7 $0.3
Please answer the following:
a) Calculate and interpret the profit variance.
b) calculate and interpret the revenue variance.
c) Calculate and interpret the cost variance.
d) Calculate and interpret the volume and price variances on the revenue side.
e) calculate and interpret the volume and management variances on the cost side.
f) How are the variances calculated above related?
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