Consider the following 2012 data for Newark General Hospital (in millions of dollars):
Revenues: Simple Budget=$4.7; Flexible Budget $4.8; Actual Results=$4.5
Costs: Simple Budget=4.1; Flexible Budget=4.1; Actual Results=4.2
Profit: Simple Budget=0.6; Flexible Budget=0.7; Actual Results=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?