Price, Volume, And Risk Variances Analysis
The first step in the computation of revenue is to calculate volume, and price variances:
Number of patients receiving flu shots =1200
Charge per flu shot =$
Number of flu patients=1400
Charge per patient =$
Formula to calculate the projected revenue Total Revenue is as follows:
= "Number of total patients receiving flu shots * total charge per flu shot) + (Number of total flu patients * total charge per patient)"
= (1200 x 55) + (1400 x 70)
= 66,000 + 98,000
Total Revenue = $164,000.
The next step is to calculate the projected revenue as revealed as follows:
Projected Revenue:
Estimated total number of flu shots =400
Estimated total charge per flu shot =$
Estimated number of flu patients = 1,600
Estimated charge per patient = $
Formula to calculate the projected revenue is as follows:
(Estimated total number of flu shots * estimated total charge per flu shot) + (estimated total number of flu patients * estimated total charge per patient).
Projected Revenue= (400 x 50) + (1600 x 80)
Projected Revenue= (20,000 + 128,000)
Projected Revenue= $148,000.
The next step is to calculate the costs of additional staff
Cost for Additional Staff
The formula to calculate the costs of additional staff is as follows:
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