Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of Goods Sold. Operating Profit = Operating Revenue - Cost
Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of Goods Sold.
Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization.
However, for a hospital, there is no "Cost of Goods Sold", so how to calculate Gross Profit margin and Operating Profit ?
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