Question

Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of...

Gross Profit margin = Gross Profit / Total Revenue, Gross Profit = Sales - Cost of Goods Sold.

Operating Profit = Operating Revenue - Cost of Goods Sold (COGS) - Operating Expenses - Depreciation - Amortization.

However, for a hospital, there is no "Cost of Goods Sold", so how to calculate Gross Profit margin and Operating Profit ?

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Answer #1

A Hospital comes under service industry. Because it does not involve in sale of goods. But it provides services. It earns rev

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