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Consider the following 2016 data for Newark General Hospital (in millions ofdollars):6.1Simple FlexibleBudgetBudgetRevenuesCostsProfit$4.74.1o.6$4.84.10.7ActualResults$4.54.20.3a.b.c.d.Calculate and interpret the two profit variances.Calculate and interpret the two revenue variances.Calculate and interpret the two cost variances.How are the variances related?

Question

a-d. How do I calculate profit, revenue and cost variances and how are they related? 

Consider the following 2016 data for Newark General Hospital (in millions of
dollars):
6.1
Simple Flexible
BudgetBudget
Revenues
Costs
Profit
$4.7
4.1
o.6
$4.8
4.1
0.7
Actual
Results
$4.5
4.2
0.3
a.
b.
c.
d.
Calculate and interpret the two profit variances.
Calculate and interpret the two revenue variances.
Calculate and interpret the two cost variances.
How are the variances related?
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Consider the following 2016 data for Newark General Hospital (in millions of dollars): 6.1 Simple Flexible BudgetBudget Revenues Costs Profit $4.7 4.1 o.6 $4.8 4.1 0.7 Actual Results $4.5 4.2 0.3 a. b. c. d. Calculate and interpret the two profit variances. Calculate and interpret the two revenue variances. Calculate and interpret the two cost variances. How are the variances related?

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Step 1

Since the question has four sub parts, only first three of them have been answered. Please post the balance sub part as a separate question.

Step 2
Step 3

We have to find two types of variance for profit, revenue and cost.

Variance 1 = Variance  with respect respect to simple budget = Actual...

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