Assignment Task:
The following is information from the most recent operating budget for Riverview Clinic. The capitated plan for Riverview Clinic has 30,000 members that each pay a flat amount per month of coverage.
|
Static Budget |
Flexible Budget |
Actual Results |
| Patient visits - FFS |
9,000 |
|
8,821 |
| Patient visits - Capitated Plan |
7,500 |
|
7,215 |
|
|
|
|
| Revenues - FFS |
$1,575,000 |
|
$1,490,749 |
| Revenues- Capitated Plan |
900,000 |
|
900,000 |
| Total Revenues |
$2,475,000 |
|
$2,390,749 |
| Variable Costs |
1,320,000 |
|
1,314,952 |
| Contribution Margin |
1,155,000 |
|
1,075,797 |
| Fixed Costs |
985,000 |
|
980,120 |
| Operating Income |
$170,000 |
|
$95,677 |
|
|
|
|
Q1. What are the missing numbers in the Flexible Budget column?
Q2. What is the overall profit variance for Riverview Clinic? Is it favorable or unfavorable?
Q3. What is the revenue volume variance for Riverview Clinic? Is it favorable or unfavorable?
Q4. What is the revenue price variance for Riverview Clinic? Is it favorable or unfavorable?
Q5. What is the cost volume variance for Riverview Clinic? Is it favorable or unfavorable?
Q6. What is the cost management variance for Riverview Clinic? Is it favorable or unfavorable?