Question text

What is Best Cares total profit margin? Hint: Review the Homework Hint PowerPoint and lecture and you will find the formula.

BestCare HMO

Statement of Operations

Revenue:

Premiums Earned $26,682

Coinsurance $1,689

Interest and Other Income $275

Total Revenues $28,646

Expenses:

Salaries and Benefits $15,154

Medical Supplies and Drugs $7,507

Insurance $3,963

Depreciation $1,367

Interest $385

Total Expenses $28,376

Net Income $270

Select one or more:

a. 6.56%

b. 4.30%

c. 1.35%

d. 0.94%