Discussion Post
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:
1) Explain how the CVP graphs would change if the providers were operating in a discounted fee-for-service environment.
2) Provide reasons for and evidence in support of your responses ironment. Evaluate which provider is in the best position to grow its business.
3) Provide reasons for and evidence in support of your responses.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.