Explain how the CVP graphs would change if the providers were operating in a discounted fee-for-service environment, discussion help

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Business Finance

Description

Assuming 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. (see the attached)

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.

300 words APA format.

Unformatted Attachment Preview

Panesh N 0 P Q R He $40 $10 $30 $30,000 1000 $40,000 CVP Graph-new- Microsoft Excel non-commercial use File Home Insert Page Layout Formules Data Review View Add-Ins Split 1 View Side by Side Formula Bar Hide comme Page Page Break Custom Full Gridlines Headings Synchronous Scrolling Zoom 100% Zoom to New Arrange Freeze Save Switch Macros Layout Preview Views Screen Selection Window Al Panes Unhide Reset Window Potion Workspace Windows Workbook Views Show Zoom Window Macres B6 25 А B С D E F G H 1 K M Firm X Firm Y 5 Sale Price pu $40 Sale Price pu 6 Variable Cost pu $25 Variable Cost pu 7 Contribution Margin pu $15 Contribution Margin pu 8 Fixed Costs $18,000 Fixed Costs 9 BEP units 1200 BEP unit 10 BEPS $48,000 BEPS 11 12 90000 90000 13 14 80000 80000 15 70000 ale Pont 29 16 60000 17 60000 18 50000 50000 19 Fixed Cost 40000 Total Rev 40000 20 21 30000 Total Cost 30000 22 20000 20000 23 10000 24 10000 25 0 0 26 0 250 500 750 1000 1250 1500 1750 2000 2250 0 250 500 750 1000 1250 27 Units sold Units Sold 28 70000 Fixed Cost Total Rev Total Cost 1500 1750 2000 2250
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Explanation & Answer

Attached.

Running head: Break-even charts – CVP graphs

Break-even charts – CVP graphs
Student’s Name
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1

Break-even charts – CVP graphs

2

Break-even charts – CVP graphs
Explain how the CVP graphs would change if the providers were operating in a discounted
fee-for-service environment.
In spite of the fact that the graphs are fairly comparative all in all appearance, there is a
significant distinction in how profits and losses happen. To begin with, consider fee for-benefit,
which it’s payments might be informed of charges, discounted ...


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