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Consider the CVP graphs below for 2 providers operating a fee for service environment: Assuming the graphs are drawn to the same scale, which provider
Consider the CVP graphs below for 2 providers operating a fee for service environment: Assuming the graphs are drawn to the same scale, which provider has the greater fixed cost? The greater cost variable? The greater per unit revenue? Which provider has the greater contribution margin? Which provider needs the higher volume to break even? How would the graphs change if the providers were operating in a discount fee for service environment? In a capital environment?
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