What was the product mix variance experienced by the laboratory service? Explain your answer. What was the price variance? Explain your answer.
One reference from textbook should be (Eric N.Berkowitz)
The director of a large regional reference laboratory was reviewing its 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 discount of $350,000, which was $25,000
more than anticipated 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 were $870,000.
Address each of the following in your paper:
What was the product mix variance experienced by the laboratory service? Explain your answer.
What was the price variance? Explain your answer.
Your paper should be 1–2 pages and follow APA guidelines.
Your textbook may be used as a reference. The APA format for your text is as follows:
Berkowitz, E. N. (2010). Essentials of health care marketing (2nd ed.). Burlington, MA: Jones &