AHIP AHM-520 Exam - Topic 5 Question 51 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 51
Topic #: 5

The Titanium health plan's product has a unit price of $120 PMPM and a unit variable cost of $80 PMPM. Titanium has $100,000 in fixed costs per month. This information indicates that, for its product, Titanium's

AUnit contribution margin is $80

BUnit contribution margin is $200

CBreak-even point is 500 members

DBreak-even point is 2,500 members

Show Suggested Answer

Suggested Answer: D

by Abel at May 04, 2022, 09:36 PM

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Leonora

6 months ago

Nope, it's not $200, that's way off!

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Tonette

6 months ago

Totally agree, $80 contribution margin makes sense!

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Alethea

7 months ago

Wait, how can the break-even point be 2,500? That seems high!

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Latonia

7 months ago

I think the break-even point is 500 members, right?

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Jaleesa

7 months ago

Unit contribution margin is definitely $80!

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Arleen

7 months ago

I'm a bit confused by this question. I'm not sure if I should use a Validation rule, a Workflow rule, or something else. I'll need to review the details and think through the different options.

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Carrol

7 months ago

Okay, let me think this through step-by-step. Currency, non-currency, and percentage are clearly valid data types. Saved Assumption and Smart List also seem relevant. I'm not sure about Text, but I'll double-check the definitions to be sure.

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Josphine

7 months ago

I'm a little confused by the last option about DRM sorting. Not sure how that relates to the benefits of using a prefix. I'll need to double-check that one before answering.

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