Wasatch Medical Clinic has three doctors on staff. The clinic's budget for 2010 is as follows:

Required:
1. Is this a static or flexible budget?
2. Prepare a flexible budget showing expected income per doctor at 22,000, 26,000, 30,000, and 34,000 total patient visits.
3. Interpretive Question: Why does the expected income per doctor increase so dramatically as the number of patient visitsincreases?

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Wasatch Medical Clinic Budget For the Year Ended December 31, 2010 Expected number of patient visits Average charge per patient. Total revenues 26,000 S25 $650,000 Budgeted costs: Variable costs: $ 52,000 Supplies for each patient ($2 x 26,000) Fixed costs: Utilities. Rent. S 2,400 9,600 90,000 150,000 25,000 30,000 Nurses' salaries Malpractice insurance Equipment leases Other Total fixed costs 307,000 $359,000 $291,000 Total budgeted costs Expected income. Number of doctors on staff. Expected income per doctor S 97,000