Operating Margin
A pediatric unit has the following revenues for the last two months of the quarter:
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April $6,325,000
May $4,875,000
It also has the following expenses:
April $1,250,000
May $785,000
Define and calculate the operating margin for each month.
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Solution Preview
The operating margin is a reflection of how profitable the facility is or how much of the earnings are available for fixed costs. The formula for this calculation is Income/Revenue X 100 (represented as a …
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