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.
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Explanation & Answer

Attached.
Running head: Break-even charts – CVP graphs
Break-even charts – CVP graphs
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Break-even charts – CVP graphs
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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 ...
