6. The graph shows that membership versus the amount of services drives revenue. Explain how the group portraya this assumption, including, including the interpretation of the data in relation to the fixed cost line.

This fact can be verified by examining the per visit contribution margin under capitation: Rev- enue per visit - Variable cost per visit = $0-$28.18 = -$28.18. With a negative contribution margin, each additional visit increases costs by $28.18 without bringing in additional revenue. environment. Revenues and Costs EXHIBIT 5.5 Atlanta Clinic: Profit Analysis Based on Numbe of Visits Loss Total Costs Profit Total Revenues 7,500,000 4,967,462 Fixed Costs 89,870 0 Volume (Number of Visits)