Question
5.7 grandview clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. its sole payer, an hmo, has
5.7 grandview clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. its sole payer, an hmo, has proposed an annual capitation payment of $150 for each of its 20,000 members. past experience indicates the population served will average two visits per year. I need help on B and C A. construct the base projected profit and loss statement on the contract. B. sketch two cvp analysis graphs for the clinic - one with number of visits on the x axis and one with number of members on the x axis. compare and contrast these graphs with the one in problem 5.3 d C. what is the clinic's contribution margin on the contract? how does this value compare with the value in problem 5.3 b?
I need help on B and C
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