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Refer to Carroll Clinic?s 2011 operating budget contained in Exhibit 8.3. Instead of the actual results reported in Exhibit 8.4, assume the results reported below: Carroll Clinic: New 2011 Results I. Volume A. FFS is $34,000 B. Capitated Lives is 30,000 members, number of member months is 360,000. Actual utilization per member month is 0.12, number of visits 43,200 C. Total actual visits is 77,200. II Revenues. A. FFS is $28 per visits * 34,000 actual visits = 952,000. B. Capitated lives is 2.75 PMPM * 360,000 actual member months = $990,000. C.Total actual revenues is $1,942,000. III. Costs. A. Variable Costs Labor is $1,242,000 (46,000 hours at $27/ hour), Supplies is 126,000 (90,000 units at $1.40/ unit). Total variable costs is $1,368,000. Variable costs per visist is $17.72 ($1,368,000 / 77,200). B. Fixed costs is overhead, plant and equipment is $525,000. C. Total actual costs is $1,893,000. IV. Profit and loss statement. Revenues. FFS is $952,000, Capitated is $990,000, Total is $1,942,000. Cost. Variable. FFS is $602,487, Capitated is 765,513, Total is $1,368,000. Contribution margin is $574,000, Fixed Costs is 525,000 Actual profit is $49,000. a. Construct Carroll?s flexible budget for 2011. b. What are the profit variance, revenue variance, and cost variance? c. Consider the revenue variance. What is the component volume variance? The price variance? d. Break down the cost variance into volume and management components. e. Break down the management variance into labor, supplies, and fixed costs variances. f. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter.