i need help with question 8.2 please. Exhibit 8.7 is supposed to help solve 8.2.

Revenue Variance $60,000 EXHIBIT 8.7 Revenue Variance and Volume and Cost Components Volume Variance $100,000 Price Variance -$40,000 Revenue variance = Actual revenues - Static revenues Volume variance = Flexible revenues - Static revenues Price variance = Actual revenues - Flexible revenues Note: In our example, there are no enrollment differences. However, if some patients are capitated, and there are enrollment differences between the static budget and realized results, the situation becomes more complex. Then, it is necessary to create two flexible budgets: (1) one flexed for both enrollment and utilization and (2) one flexed only for enrollment. With two exible budgets, volume variances can be calculated for both changes in the number of covered lives and changes in utilization. Volume variance Flexible enrollment and utilization) revenues-Static revenues Enrollment variance = Flexible (enrollment) revenues - Static revenues Utilization variance = Flexible (enrollment and utilization) revenues - Flexible (enrollment) revenues we are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars): Static Budget $425 Flexible (Enrollment/ Utilization) Budget $200 Flexible (Enrollment) Budget $180 Actual Results $300 a. What do the budget data tell you about the nature of Wendover's patients: Are they capitated or fee-for-service? (Hint: See the note to Exhibit 8.7.) b. Calculate and interpret the following variances: Revenue variance Volume variance 000 Price variance 000. Enrollment variance 2015 Utilization variance 0.005