Instructions —-Your reading and follow-up response to a fellow student’s discussion reply should not be a general acceptance of his or her opinion, but rather something that challenges the student to defend his or her stated response, or something that presents an alternate idea or additional analysis. Again, research should be used as evidence in your follow-up responses.
Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between one or more lines of reasoning in the discussion. Follow-up posts should also be substantive and include support from examples and correctly cited research when possible. Follow-up posts usually should not exceed 300 words. Often, they will be approximately 100 to 200 words in length. Remember though, substance is more important than word count. Simply agreeing or disagreeing is not considered substantive. One or two sentences are not usually considered substantive. The dialogues should be useful conversations that analyze topics both broadly and deeply, providing evidence (research) that supports your response.
The cost-volume-profit (CVP) analysis is a method for determining volume fluctuations on costs and profits. It will offer helpful information about profitability based on different expenses, volumes, and price forecasts, and assumptions. Managers can use this information to decide on “future courses of action about pricing and the launch of new offerings” (Gapenski & Reiter, 2016).
Firm X has a revenue of $40 per unit and a variable cost rate of $25, leaving a contribution margin of $15, as seen in the CVP graphs for Firm X and Firm Y. Firm Y has a $40 per unit revenue and a $10 variable expense rate, leaving a $30 contribution margin. On the other hand, Firm X has a fixed cost of $18,000, indicating that they have more direct labor costs in their cost system, while Firm Y has a fixed cost of $30,000, indicating that they are more automated (
Given that taking a discounted fee-for-service rate would reduce the amount of revenue per company earns per unit sold, the graphs for Firms X and Y would change if the fixed and variable cost rates remained constant compared to the number of units sold. While the total cost line in both graphs would stay the same, the steepness of the total sales upward-sloping line on either graph would reduce to match the decrease in revenue per segment, bringing the breakeven point further to the right. For the providers to break even and begin making a profit, additional units would need to be sold.
Regardless of the amount of services rendered in a capitated setting, revenues are set per member per time. In this situation, no matter how many units are shipped, total revenue is fixed. As a result, on all graphs, the upward sloping lines representing total sales would shift to a smooth (horizontal) line (assuming the x-axis represents units sold), meaning that total revenue would remain constant independent of unit volume sold. Hence, to make a profit, the vendors will be compelled to reduce the number of units delivered. The providers will incur a financial loss if the gross costs of supplying those units outweigh the fixed total sales sum.
Given that the contribution margin will begin contributing to earnings after fixed costs have been offset (Gapenski & Reiter, 2016), Firm Y will be in a great position to expand its business if the units sold remained stable. Not only are the net costs lower, allowing them to break much faster, but they still have a higher contribution margin of $30 as opposed to Firm X’s $15 contribution margin, resulting in a higher profit. On the other hand, Firm Y would suffer more significant losses as the economy suffers a downturn, lowering demand (
References
Gapenski, L. C., & Reiter, K. L. (2016). Healthcare finance: An introduction to accounting and financial management (6th ed.). Chicago, IL: Health Administration Press.
S CVP-graph. Retrieved from
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
Ace Writing Center has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.
Essays
At Ace Writing Center, Nowadays, students normally have extremely busy schedules. You will note that some of them have to take on some evening or weekend jobs in order to get some income that can help them to sustain in college or in the university. This can deny them a chance to write all the essays given. Others usually get bombarded with a lot of work by their lecturers. This can still delay such students from working on all their essays. However, some of them usually try to work on all these essays but end up delivering their work late. This can prevent them from graduating since most lecturers are strict on deadlines. If you want to write a business essay, the wise way is to hire an outstanding essay writing service like us, so that you can get the best results. If you are keen, you will note that many companies usually overcharge their customers. Some of them are there only to make money. And in reality, they really don’t care to build a long term commitment with students. You should not choose such companies. You should take your time and choose a reliable company to work with. Ace Writing Center is the ultimate solution for you. We have been offering our writing service for more than 7 years. This is a clear indication that you will get quality essay writing service. We have a wide range of writers who can work on any business essay that you might have. We believe in doing extensive research so that we can provide quality work to all our clients. .
Admissions
Admission and Business Papers
Have you ever had to write an admission essay for college? The majority of students face the same issues when applying to a university or college and many in such situations decide they need professional help to cope with this matter. They get in a situation when the deadline keeps coming closer but lack motivation to start because they are just not sure if their writing skills are strong enough. We have a solution for you! Ace Writing Center is the best admission essay writing service with a large professional team and years of experience in providing high-quality papers to students of all levels and faculties. The mission of our team is to help students make their dreams of entering a good college come true and that’s what we offer!.
Editing
Editing and Proofreading
Sometimes all the words for your paper just flow out of your mind and into your fingers. You type quickly at your keyboard and there they are, your beautiful words right there on the screen. But you have no idea how to polish it up. You may be wishing there was a paper writing service that offered this type of writing service. Look no more! Here at Ace Writing Center, we offer you an editing and proofreading option that you can't find anywhere else..
Coursework
College Essay Writing
In case you are familiar Ace Writing Center, you know the way to distinguish a better company from a cheap one exactly. First of all, poor service website does not have a sufficient support. We think support team is an essential part of success; it has to answer all clients’ questions and be a connecting link between clients and their writers. On our web-service you will get answers about anything you need and your writer will receive all your instructions, assignments and requirements exactly and swiftly. A writing service that we run has got a flexible pricing system that will save you from senseless wastes and many bonus systems that let you sparing money for something important for you.
