Discussion:
The director of a large regional reference labora¬tory was reviewing the service's performance over the past year. The laboratory had gross revenues of $3,500,000. Some of the business was to managed care plans and to large-volume users that resulted in a dis¬count of $350,000, which was $25,000 more than antici¬pated due to intense competition. The cost of providing the lab testing was $1,400,500, which was $250,000 higher than expected. Direct costs for salaries was $870,000. What was the product mix variance experienced by the laboratory service? What was the price variance? Show your work