Problem 8.7 I included 8.6 for reference

8.7 Refer to Problem 8.6. Chelsea Clinic's actual results for 2015 are shown in the table below. Total FFS Visit Volume 100,000 visits Payer Mix: Blue Cross 40% Highmark 60% Reimbursement Rates: Blue Cross S28 per visit Highmark $18 per visit Variable Costs Resource Inputs Labor 50,000 total hours Supplies 150,000 total units (continued) (continued from previous page) Resource Input Prices: S28.00 per hour Labor $1.50 per unit Supplies Fixed Costs (overhead, $500,000 plant, and equipment) a. Construct Chelsea Clinic's flexible budget and actual opera results for 2015. b. What are the profit variance, revenue variance, and cost 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