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Please calculate operating margin % and excess margin % using the information below and explain how...

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Finance

Please calculate operating margin % and excess margin % usingthe information below and explain how you arrived at youranswer:

2019
Revenue
Client Services?Gross2,366,410
Contractual Allowances72,565
Patient Revenue?Net2,293,845
Other Revenue?Imaging246,454
Total Revenue2,540,299
Expenses
Salaries and Wages1,292,372
Staff Benefits339,904
Administrative Expenses18,330
Advertising34,000
Collection Fees1,267
Computer Support42,668
Consultants1,529
Equipment Leases10,400
Insurance28,100
Laboratory64,882
Laundry and Housekeeping12,830
Legal/Audit8,100
Medical Supplies61,450
Office Supplies18,437
Printing and Postage4,222
Professional Fees23,955
Rent78,500
Repairs and Maintenance3,167
Telephone2,766
Utilities18,925
Interest350
Depreciation22,556
Bad Debt Expenses2,437
Total Expenses2,091,147
Income (Loss) Before Taxes       449,152
Federal Tax        175,169
State Tax40,424
Income (Loss) After Taxes       233,559

Answer & Explanation Solved by verified expert
4.2 Ratings (822 Votes)

I could not understand your requirement of "Excess Margin %". I have not hear this term before.

So I have calculated the operating margin as per table below. Please see the table below.

Operating profit is otherwise known as EBIT or Earnings before interest and taxes.

Parameter 2019
Revenue
Client Services?Gross 2,366,410
Contractual Allowances 72,565
Patient Revenue?Net 2,293,845
Other Revenue?Imaging 246,454
Total Revenue    (A) 2,540,299
Operating Expenses
Salaries and Wages 1,292,372
Staff Benefits 339,904
Administrative Expenses 18,330
Advertising 34,000
Collection Fees 1,267
Computer Support 42,668
Consultants 1,529
Equipment Leases 10,400
Insurance 28,100
Laboratory 64,882
Laundry and Housekeeping 12,830
Legal/Audit 8,100
Medical Supplies 61,450
Office Supplies 18,437
Printing and Postage 4,222
Professional Fees 23,955
Rent 78,500
Repairs and Maintenance 3,167
Telephone 2,766
Utilities 18,925
Bad Debt Expenses 2,437
Total Expenses (B) 2,068,241
Operating Profit ( C) = (A) - (B) 472,058
Operating Margin ( C) / (A) 18.58%

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Transcribed Image Text

Please calculate operating margin % and excess margin % usingthe information below and explain how you arrived at youranswer:2019RevenueClient Services?Gross2,366,410Contractual Allowances72,565Patient Revenue?Net2,293,845Other Revenue?Imaging246,454Total Revenue2,540,299ExpensesSalaries and Wages1,292,372Staff Benefits339,904Administrative Expenses18,330Advertising34,000Collection Fees1,267Computer Support42,668Consultants1,529Equipment Leases10,400Insurance28,100Laboratory64,882Laundry and Housekeeping12,830Legal/Audit8,100Medical Supplies61,450Office Supplies18,437Printing and Postage4,222Professional Fees23,955Rent78,500Repairs and Maintenance3,167Telephone2,766Utilities18,925Interest350Depreciation22,556Bad Debt Expenses2,437Total Expenses2,091,147Income (Loss) Before Taxes       449,152Federal Tax        175,169State Tax40,424Income (Loss) After Taxes       233,559

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