Variable Cost, rate, per-unit revenue, contribution margin & fixed costs
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the graphs are drawn to the same scale, consider the break-even
charts—cost-volume-profit (CVP) graphs—below for two competing providers
operating in a fee-for-service environment.
(pictures on attached file)Free for service environment Assignment.docx
On
the basis of your understanding of variable cost rate, per-unit revenue,
contribution margin, and fixed costs, answer the following questions:
- How would the given graphs
change if the providers were operating in a discounted fee-for-service
environment? - How would these graphs change
in a capitated environment? Which provider is in the best position to grow
its business?
Provide
reasons for and evidence in support of your responses.
Comment
on the postings of two of your classmates. Is your assessment the same or
different? Why?
Be
sure to cite any relevant resources used in framing your responses. Apply APA
standards to cite sources.
