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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. b. Sketch two CVP analysis graphs for the clinicone with number of visits on the x axis and one with number of members on the x axis. c. What is the clinic's contribution margin on the contract per visit? What is the contribution margin per member? 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. b. Sketch two CVP analysis graphs for the clinicone with number of visits on the x axis and one with number of members on the x axis. c. What is the clinic's contribution margin on the contract per visit? What is the contribution margin per member
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