Here are the 2011 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):
FlexibleFlexible
StaticEnrollment/Utilization)(Enrollment)Actual
BudgetBudgetBudgetResults
$425$200$180$300
a. What does the budget data tell you about the nature of Wendover'spatients: Are they capitated or fee-for-service? (Hint: See the note to Exhibit 8.7.)
b. Calculate and interpret the following variances:
•Revenue variance
•Volume variance
•Price variance
•Enrollment variance