discussion

Assuming the graphs are drawn to the same scale, consider the break-even chartsâcost-volume-profit (CVP) graphsâbelow for two competing providers operating in a fee-for-service environment. (see the attached)

On the basis of your understanding of variable cost rate, per-unit revenue, contribution margin, fixed costs, and the CVP graphs above, answer the following questions:

• Explain how the CVP graphs would change if the providers were operating in a discounted fee-for-service environment.
• Explain how the CVP graphs would change in a capitated environment. Evaluate which provider is in the best position to grow its business.

300 words APA format.