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Consider the following 2011 data for Newark General Hospital (in millions of dollars):

Look at the chart below and

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 below related?

 

                         Static Budget                Flexible Budget               Actual Results

Revenues          $ 54.7                                   $4.8                                $4.5

Cost                    4.1                                          4.1                                 4.2

Profits                0.6                                          0.7                                 0.3

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