This is based on question 8.3 a.
Using the below table, I am not understanding how to calculate and what the equations are to come to the flexible budget numbers of each line item listed. Thank you
Static Flexible Actual
Number of Surgeries 1200 1300 1300
Patient Revenue $2,400 $2,600 $2,535
Salary Expense $1,200 $1,300 $1,365
Non-Salary Expense $ 600 $650 $585
Profit $ 600 $650 $ 585
Computation of equations are to come to the flexible budget Numbers | |||
Static | Flexible | Equation | |
Number of Surgeries (S) | 1,200 | 1,300 | |
Patient Revenue | 2,400 | 2,600 | S X $2 |
Salary Expense | 1,200 | 1,300 | S X $1 |
Non-Salary Expense | 600 | 650 | S X $0.5 |
Profit | 600 | 650 | S X $0.5 |
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