Dolph and Evan Started the DE Restaurant in 20X3

question 37

Essay

Dolph and Evan started the DE Restaurant in 20X3.They rented a building,bought equipment,and hired two employees to work full time at a fixed monthly salary.Utilities and other operating charges remain fairly constant during each month.
During the past two years,the business has grown with average sales increasing 1% a month.This situation pleases both Dolph and Evan,but they do not understand how sales can grow by 1% a month while profits are increasing at an even faster pace.They are afraid that one day they will wake up to increasing sales but decreasing profits.
Required:
Explain why the profits have increased at a faster rate than sales.Use the terms variable costs and fixed costs in your response.

Recognize the coverage and target populations of Medicare and Medicaid.

Identify the issues and implications of moral hazard in health insurance.

Differentiate between the health care systems of the United States and other industrialized countries.

Understand the concepts of defensive medicine, part-time and temporary work trends due to health care costs, and the fee-for-service arrangement.

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Definitions:

Truth

The quality or state of being in accordance with fact or reality.

Privilege

A special right, advantage, or immunity granted to a particular person or group of people.

Defamation

The act of communicating false statements about a person that injure their reputation.

Actual Malice

A legal standard in defamation law requiring the plaintiff to prove that the defendant made a false statement with knowledge of its falsity or with reckless disregard for the truth.