For this homework, assume that you are the newly hired financial analyst at Cascades Mental Health Clinic and you are asked to prepare the requested variance analysis (in Excel) and one page executive summary of recommendations (in Word) (see Case 10 in 'Cases' textbook, pages 69-77).

Hint:Because of the large number of variances involved, this case can quickly becomeunmanageable. The best way to deal with this problem is to focus on the variance structureprovided in Exhibit 10.5 of the case. The spreadsheet model for this case uses this structure, whichdivides the variances into two general categories: revenues and costs. Most of the analysis focuseson costs, and the variance definitions used in the model are such that a negative variance meanscosts are greater than expected. Click HERE to access the spreadsheet template for this case.

1. What is the aggregate profit (total) variance for 2022 for the business as a whole? Interpret yourresults in your executive summary.

2. What is the profit (total) variance for each of the four product lines?Interpret yourresults in your executive summary.

3. Decompose the profit (total) variance for the aggregate organization and for each product lineinto revenue and cost variances.Interpret yourresults in your executive summary.

4. Decompose the revenue variances into enrollment and rate variances.Interpret yourresults in your executive summary.

5. Decompose the cost variances into volume and management variances.Interpret yourresults in your executive summary.

6. Now focus on the volume variances. Break these down into enrollment and utilizationvariances, both in the aggregate and for the four product lines.Interpret yourresults in your executive summary.

7. Now focus on the management variances. Note that the case does not contain data related tosupplies costs or fixed costs, so the management variances are, in reality, staffing variances.Break down the staffing variances into rate and efficiency variances both for each product lineand, within each product line, by inpatient and outpatient services. Interpret yourresults in your executive summary.

8. Prepare one page executive summary in Word about your variance analysis. In this summary, focus on the underlying meaning of the numbers as opposed to the numbers themselves. What are your recommendations for management action to counter the adverse financial trends experienced in 2022?

Please submit your spreadsheet (in Excel) and one page executive summary (in Word).