Question
11.1 A clinic has $1 million in revenues and $950,000 in costs. What is its operating margin?Operating income = Revenue - Costs. Step-by-step explanation $1,000,000-$950,000
11.1 A clinic has $1 million in revenues and $950,000 in costs. What is its operating margin?Operating income = Revenue - Costs.
Step-by-step explanation
$1,000,000-$950,000 = $50,000
Operating Margin = Operating Income / Net Sales * 100%
50,000/1,000,000 * 100% = 5%
11.2. The owners of the clinic in Exercise 11.1 invested $400,000. What is the return on investment? Is it adequate?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Energy, Foresight And Strategy
Authors: Thomas J Sargent
1st Edition
1317329686, 9781317329688
