ILLUSTRATIVE SCENARIO / 1 OF 5
Revenue is not contribution.
“Five missed visits a day, $20,000 revenue per visit, 365 days. Contribution margin is 5%.”
Calling $36.5 million a savings opportunity skips the margin and assumes every missed visit could be recovered.
The stated multiplication gives $36.5 million in gross revenue and $1.825 million at the stated margin. Preserve the assumptions and keep those derived figures distinct from achievable benefit.
Demand, recoverability, capacity, costs and achievable savings remain unestablished.
What to test in the actual workflow
- Preserve the source inputs and the stated margin.
- Label the period and assumptions used.
- Withhold the savings conclusion without supporting evidence.
