8.1 Consider the following 2007 data for Newark General Hospital (in millions of dollars): Static Budget Flexible Budget Actual Results Revenues $4.7…

8.1 Consider the following 2007 data for Newark General Hospital (in millions of dollars): Static Budget Flexible Budget Actual Results Revenues $4.7 $4.8 $4.5 Costs 4.1 4.1 4.2 Profits 0.6 0.7 0.3 a Calculate and interpret the profit variance b Calculate and interpret the revenue variance c Calculate and interpret the cost variance d Calculate and interpret the volume and price variances on the revenue side e Calculate and interpret the volume and management variances on the cost side f How are the variances calculated above related?

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