Consider the following 2016 data for Newark Hospital (in millions of dollars) Simple Budget Flexible Budget Actual Results Revenues $4.7 $4.8 $4.5 Costs 4.1 4.1 4.2 Profit 0.6 0.7 0.3 a. Calculate...

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Finance

Consider the following 2016 data for Newark Hospital (inmillions of dollars)
Simple Budget Flexible Budget Actual Results
Revenues $4.7 $4.8 $4.5
Costs 4.1 4.1 4.2
Profit 0.6 0.7 0.3
a. Calculate and interpret the two profit variances
b. Calculate and interpret the two revenue variances.
c. Calculate and interpret the two cost variances.
d. how are the variances related
Answer a-d.

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a Profit variance in case of simple budget 06 03 03 unfavorable Profit variance in case of flexible budget 07 03 04 unfavorable Flexible budget calculates the profit at the actual output level using the budgeted costs and revenue per unit Simple budget does not consider the actual output but the budgeted output b Revenue variance in case of See Answer

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Consider the following 2016 data for Newark Hospital (inmillions of dollars)Simple BudgetFlexible BudgetActual ResultsRevenues$4.7$4.8$4.5Costs4.14.14.2Profit0.60.70.3a. Calculate and interpret the two profit variancesb. Calculate and interpret the two revenue variances.c. Calculate and interpret the two cost variances.d. how are the variances relatedAnswer a-d.

	Simple Budget	Flexible Budget	Actual Results
Revenues	$4.7	$4.8	$4.5
Costs	4.1	4.1	4.2
Profit	0.6	0.7	0.3