Southview Medical is a medium- sized general practice clinic that has invested in its own radiology and laboratory departments, which are run as profit centers. The clinic has three profit centers—Clinical Practice, Radiology, and Laboratory. It budgeted profits and invested capital, equity, and net assets for the three divisions and now wants to compare actual results to plan. It has enlisted your help to run the variances using the following information.

REQUIRED:

a. Calculate the ROI, ROE, and RONA variances for Clinical Practice.

b. Calculate the ROI, ROE, and RONA variances for Radiology.

c. Calculate the ROI, ROE, and RONA variances for Laboratory.

d. Where are the major problems for the medical practice? Where does it look strongest? Be specific, using the numbers from your analysis.

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Southview Medical Cinical Proctice Radiology Laboratory Budget Actual Budget Actual Budget Actudl Profit $875,000 $900,000 $1,200,000 $1,190,000 $750,000 $775,000 Invested capital $4,800,000 $5000,000 $6,500,000 $6,900,000 $5,900,000 $5,750,000 Equity $3,900,000 $4,000,000 $5,600,000 $5,400,000 $4,750,000 $4,900,000 Net assets $5,250,000 $5,500,000 $7,250,000 $7,500,000 $6,540,000 $6,430,000