Week 3 Discussion

 

Before the end of the Week, begin commenting on at least two of your classmates responses. 

Review the    (i attached) for more information on CVP graphs and how to read them. Assuming the graphs are drawn to the same scale, consider the break-even chartscost-volume-profit (CVP) graphsbelow for two competing providers operating in a fee-for-service environment. On the basis of your understanding of variable cost rate, per-unit revenue, contribution margin, fixed costs, and the CVP graphs above, answer the following questions:

  • Explain how the CVP graphs would change if the providers were operating in a discounted fee-for-service environment.
  • Explain how the CVP graphs would change in a capitated environment. Evaluate which provider is in the best position to grow its business.
  • Provide reasons for and evidence in support of your responses.

As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Your initial posting should be addressed at 300-500 words

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