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1. Total margin shows that for every dollar of revenue, how many cents is profit? 2. Operating margin shows that for every dollar of revenue
1. Total margin shows that for every dollar of revenue, how many cents is profit?
2. Operating margin shows that for every dollar of revenue related to the core operations, how many cents is profit?
Revenues: Patient service revenue Provision for bad debts Net patient service revenue Other operating revenue Total revenues Expenses: $ $ $ $ $ Total expenses $ Formula: Operating income $ Operating Income = Revenue - Expenses Non Operating income $ Net income $ Net Income = Operating Income + Non Operating Income Total margin 15.4% Total Margin = Net Income / Total Revenues Operating margin 14.1% Operating Margin = Operating Income / Total Revenues Total margin shows that for every dollar of revenue, how many cents is profit? Operating margin shows that for every dollar of revenue related to the core operations, how many cents is profit? 175,000 5,000 170,000 1,215 171,215 147,000 24,215 2,220 26,435Step by Step Solution
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