grandview clinic has fixed costs of 2 million and an average variable cost rate of $15 per visit. it Show more grandview clinic has fixed costs of 2 million and an average variable cost rate of $15 per visit. its sole payer, anHMO has proposedan annual capitation payment of $150 for eachof its 20,000 members. past experience indicates the population served will average two visits per year. construct base case projected P&L statement on the contract, (b) sketch two CVP analysis graphs for the clinic, one with the number of visits on x- axis and one with the number of members on the x axis. Compare and contrast these graphs with the one in problem 5.3d. (C) what is clinics contribution market on the contract? How does this value compare with the value in problem 5.3b. (D)what profit gain can be realized if the clinic can lower per member utilization to 1.8 visits Show less
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