Givens: Planned Actual A Patient Days 24000 30000 B Pharmacy $100000 $140000 C M

Givens: Planned Actual
A Patient Days 24000 30000
B Pharmacy $100000 $140000
C Miscellaneous Supplies $56000 $67500
D Fixed Overhead Costs $708000 $780000a. Determine the total variance associated with the planned and actual expenses.b. Prepare a flexible budget estimate for variable costs. Compare budget flexible budget and actual. (show related volumes.)c. Determine what variance is due to changes in volume and what variance is due to change in rates.2. Sure Care Health Maintenance Organization is seeking a managed care contract with a local manufacturing plant. Sure care estimates that the cost of providing care for the 300 employees will be $36000 per month. The manufacturing company offered Sure Care a premium bid of $200 per employee per month.
a. If Sure care accepts this bid and contracts with the manufacturing firm will Sure Care earn a profit or loss for the year? How Much?b. What premium per employee per month does sure Care need to break even?c. If Sure Care wants to earn $100000 in profit for the year what is the required premium per employee per month?d. What concerns do you have about this analysis?