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Can you graph my answers to the questions? I have attached the answers. I ONLY need help with B. Sketching the two graphs. Grandview Clinic

Can you graph my answers to the questions?

I have attached the answers. I ONLY need help with B. Sketching the two graphs. 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. a. Construct the base case projected P&L statement on the contract. 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?d. What profit gain can be realized if the clinic can lower per member utilization to 1.8 visits?

Amount

Net revenue ($150 * 20000 members)

$ 3,000,000

less- cost of sales ($15(per visit) * 2 * 20000)

$ 600,000

gross profit

$ 2,400,000

Less: - fixed expenses

$ 2,000,000

Net profit

$ 400,000

P&L statement

Answer: -

If the per member visit goes to 1.8, then the gain is

sales ($ 150 * 20000)

$ 3,000,000

Less:- variable cost ($ 15 per visit * 1.8 times * 20000)

$ 540,000

contribution

$ 2,460,000

Less- fixed expenses

$ 2,000,000

Net profit

$ 460,000

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