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?Gross 2,366,410
Contractual Allowances 72,565
Patient Revenue?Net 2,293,845
Other Revenue?Imaging 246,454
Total Revenue 2,540,299
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
Interest 350
Depreciation 22,556
Bad Debt Expenses 2,437
Total Expenses 2,091,147
Income (Loss) Before Taxes        449,152
Federal Tax         175,169
State Tax 40,424
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