Healthcare Finance I Formulas Question and answers 100% correct 2025/2026

Healthcare Finance I Formulas Question and answers 100%
correct 2025/2026
1.Not-for-Profit Net In- · Revenues - Expenses = Net Income
come

2.For-Profit Income Revenues - Expenses =
Operating Income
3. For-Profit: Operating income less taxes = Net Income (profit or loss)
Operating Income
less taxes

4. Accounting Equation Total Assets = Total Liabilities + Total Stockholder's Equity

5. Total Costs Total Costs = Total Fixed Costs plus Total Variable Costs

6. Total Variable Costs Total Variable Costs = Variable Cost Rate (per unit) times total number
of units
(e.g., visits).

7. Average Total Costs Average Total Costs (aka total cost per unit) = Total Costs divided by
total
number of units.

8. Total Revenue Total Revenue = Price times total volume sold

9. Total Profit Total Profit = Total Revenue - Total Costs

10. Average Profit Margin
per Unit

11. Break-even in
sales units

12. Break even in
sales dollars

13. Total
Contribution
1/
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