CHAPTER $8$: FINANCIAL PLANNING & BUDGETINGHomework Problem $3\mathrm{.}4$Chelsea Clinic projected the following budget information for $2021$:Total FFS Visits Volume$80,000$visitsPayer Mix: Blue Cross$55\%$ Highmark$45\%$Reimbursement Rates: Blue Cross$$55$per visit Highmark$$60$per visitVariable Costs Resource Inputs: Labor$0\mathrm{.}8$hours per visit Supplies$1\mathrm{.}4$units per visit Resource Input Prices: Labor$$25\mathrm{.}00$per hour Supplies$$1\mathrm{.}50$per unitFixed Costs$$950,000$Using Exhibit $8\mathrm{.}3$ as a guide $($excluding the capitated numbers since payers in this homework problem are all FFS$)$ construct Chelsea Clinic's operating budget for $2021,$ including projections for volume, revenues, costs, and a P&L statementVOLUME Blue Cross $=$ number of Visits x payer $\%=44000$Highmark $=$ number of visits x payer $\%36000$Total Volume $=80000$REVENUESRevenue $=$ reimbursement rate x expected visits Blue Cross $=$$$2,420,000$Highmark $=$$$2,160,000$Total Revenue $=$$$4,580,000$COSTS$*$Variable Costs Variable $=($volume x hours per visit$)$ x resource input prices Labor$$1,600,000\mathrm{.}00$Supplies $$168,000\mathrm{.}00$Total Variable Costs $$1,768,000\mathrm{.}00*$Fixed Costs $$950,000\mathrm{.}00$Total Costs $$2,718,000\mathrm{.}00$P&L RevenuesCosts