Mountain Medicine has 2 overhead departments General Administration and Maintenance. They also have 2 service line (revenue generating) departments Medicine and Lab. Below is some data on Mountain Medicine's Service Line Department Costs What is the Fully Allocated Total Cost for the Medicine Department? a. $1,500,000 b. $1,950,000 c. $2,150,000 d. $450,000 What is the difference between net income and operating income and what does each tell us. i. Net income is patient services revenues - operating expenses; Operating revenue is the difference between revenues from all sources and operating expenses. Both tell us how much of the money flowing into an organization it gets to keep. ii. There is no difference. These are 2 terms for the same thing. iii. Operating income = cash - current liabilities. Net income = total assets total liabilities. Both tell us what the oprganization owns. iv. Net income is total revenues - total expenses; Operating income is operating revenues - operating expenses. Net income tell us how much of the money flowing into an organization it gets to keep. Operating income tells us how much of the revenues from performing our core business we get to keep and privides insight into how well we are controlling expenses