Review the CVP-graph PDF for more information on CVP graphs and how to read them. 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. 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.
To support your work, use your course and textbook readings and also use the South University Online Library. 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.
Please include the questions, references and in text citations.