Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousand dollars) Number of surgeries Static1,200

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Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousand dollars)

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Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousand dollars) Number of surgeries Static1,200
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Number of surgeries  Static    1,200                   Flexible           1,300                          Actual 1,300

Patient Revenue        Static    $2,400                  Flexible            $ 2,600                       Actual  $ 2,535

Salary expense        Static       1,200               Flexible                 1,300                      Actual    1,365

Non Salary expense Static     600                 Flexible                 650                       Actual         585

Profit                          Static         $ 600            Flexible                  $650                  Actual        $585

The center assumes that all revenue and costs are variable and hence tied directly to patient volume

a) Explain how each amount in the flexible budget was calculated( Hint examine the static budget to determine relationship of each bud get line to volume)

b) Determine the variances for each line of the profit and loss statement , both in dollar and in percentage term

c) what do the Part b results tell Brandons mangers about the surgery center operations quarter

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