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Statically determine a plane structure.

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Statically determine a plane structure.

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For Sum of V=0 =>Fob*sin60+24.9=0
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A plane structure statically determined.

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Profit Variance Questions

1. Consider the following 2007 data for Newark General Hospital (in millions of dollars):
Static Budget | Revenue 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?

2. Here are the 2007 revenues for the Wendover Group Practice Association for four different budgets, in thousands of dollars:
Static Budget $425
Flexible Enrollment Utilization Budget $200
Flexible Enrollment Budget $ 180
Actual Results $ 300
a. What does the budget data tell you about the nature of Wendover's patients: Are they capitated or fee-for-service?
b. Calculate and interpret the following variances:
- Revenue variance
- Volume variance
- Price variance

3. Here are the budgets of Brandon Surgery Center for the most recent historical quarter, in thousands of dollars:
Static | Flexible | Actual
Number of Surgeries | 1200 | 1300 | 1300
Patient Revenue | $2400 | $2600 | $2535
Salary Expense | 1200 | 1300 | 1365
Non Salary Expense | 600 | 650 | 585
Profit | $600 | $650 | $585

The center assumes that all revenues 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 the relationship of each budget line to volume.)
b. Determine the variances for each line of the profit and loss statement, both in dollar terms and in percentage terms. (Hint: Each line has a total variance, a volume variance, and a management variance.)
c. What do the Part b results tell Brandon's managers about the surgery center's operations for the quarter?

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