Question
Consider the following income statement BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in thousand) Revenue: Healthcare premiums $26,682 Fees and other
Consider the following income statement
BestCare Health Insurer Statement of Operations Year Ended June 30, 2016 (in thousand)
Revenue:
Healthcare premiums $26,682
Fees and other revenue 1689
Net investment income 242
Total revenues $28613
Benefits and expenses:
Healthcare costs. $15,154
Operating expenses:
Selling expenses. 39632
General and Administrative expenses 7893
Interest expense. 385
Total benefits and expenses $27395
Net income. $1218
a- Compare and contrast the income statement with the ones presented in exhibits 11.1 and 11.2.
b- What is BestCares total margin? How can it be interpreted?
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