A Company Has Operating Income of $300,000, Revenues of $1,500,000

question 125

Multiple Choice

A company has operating income of $300,000, revenues of $1,500,000, total assets of $2,000,000 and an ROI of 15%. To improve the ROI, to increase ROI to 20%, which of the following investment turnovers would need to be achieved?

• A) .75
• B) 1.5
• C) 1
• D) 2

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Definitions:

Fee-For-Pay

A pricing model where services are provided and charged based on specific transactions or uses rather than a subscription or blanket fee.

Out-Of-Pocket Costs

Expenses for medical care that aren't reimbursed by insurance, including deductibles, co-payments, and coinsurance.

Outpatient Facilities

Medical centers or clinics where patients receive treatment without being admitted overnight, including diagnostic services and minor surgical procedures.

Rising Health Care Costs

The increasing expenses associated with medical care services and products.