Using the following performance data, calculate the volume adjusted labor rate variance and volume adjusted efficiency variance. The department is considered 30% variable. Salaries Payroll Hours Service Volume Actual $470,500 22,500 392,000 Budget $477,750 21,000 390,000 Problem 2 You are examining a proposal for a new business opportunity. A new procedure can be offered at a price of $1,000. The collection rate is expected to be 75%. Demand is anticipated to be 1,000 units in year one, growing by 25% each year thereafter until the end of year five. Each procedure consumes $450 of supplies. Salaries are estimated to be $52,000 a year each for 11 FTEs plus an additional 20% for fringe benefits. Fixed operating costs are $8,000 per month and annual rent is $20,000/year. Develop a marginal P&L for this business opportunity. Based on that P&L, would you pursue this opportunity?