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Calculate the operating margins

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Reference no: EM133239448

Dr. Lee, the owner of a small primary health care clinic, is calculating the operating margins for the clinic from calendar year 2017 - 2018.

2017 Data: Operating Income = $325,000, Operating Revenues = $4,865,000

2018 Data: Operating Income = $250,000, Operating Revenues = $4,365,000

Formula for Operating margin = Operating income divided by Operating revenues x 100

Calculate the Operating Margins for 2017 and 2018

a. 2017 = .007%, 2018 = .006%

b. 2017 = .7%, 2018 = .6%

c. 2017 = 6.7%, 2018 = 5.7%

d. 2017 = 66.8%, 2018 = 57.2%

Reference no: EM133239448

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