8.6 is attached for referece.

For 8.7b, please show the 3 different variance calculations for each of the 4 lines items listed on the P&L Statement (Revenue, Salary (labor), Non-Salary Expenses, & Profit) and a Dollar Check that corresponds to the Total Variance for each line item.

8.7 Refer to Problem 8.6. Chelsea Clinic's actual results for 2015 are shown in the table below. 100,000 visits 40% 60% Total FFS Visit Volume Payer Mix: Blue Cross Highmark Reimbursement Rates: Blue Cross Highmark Variable Costs Resource Inputs: Labor Supplies $28 per visit $18 per visit 50,000 total hours 150,000 total units (continued) (continued from previous page). Resource Input Prices: Labor $28.00 per hour Supplies $1.50 per unit Fixed Costs (overhead, $500,000 plant, and equipment) a. Construct Chelsea Clinic's flexible budget and actual operating results for 2015. b. What are the profit variance, revenue variance, and cost variance? c. Focus on the revenue side. What is the volume variance? The price variance? d. Now consider the cost side. What are the volume and management variances? Break down the management variance into labor, supplies, and fixed costs variances. e. Interpret your results. 8.6 Chelsea Clinic projected the following budget information for 2015: 90,000 visits Total FFS Visit Volume Payer Mix; 08.12 Blue Cross003 Highmark 40% 60% A Reimbursement Rates: visit $25 per visit $20 per visit Blue Cross Highmark Variable Costs Resource Inputs: Labor Supplies Resource Input Prices: Labor Supplies Fixed Costs (overhead, plant, and equipment) 48,000 total hours 100,000 total units $25.00 per hour $1.50 per unit $500,000 a. Construct Chelsea Clinic's operating budget for 2015. b. Discuss how each key budget assumption might result in a budget variance, and name the variance that would be used to examine results associated with each assumption