AHIP AHM-520 Exam - Topic 3 Question 128 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 128
Topic #: 3

The Fairway health plan is a for-profit health plan that issues stock. The following data was taken from Fairway's financial statements:

Current assets.....$5,000,000

Total assets.....6,000,000

Current liabilities.....2,500,000

Total liabilities.....3,600,000

Stockholders' equity.....2,400,000

Fairway's total revenues for the previous financial period were $7,200,000, and its net income for that period was $180,000.

For the previous financial period, Fairway's net profit margin was

A2.50%

B3.00%

C3.60%

D7.50%

Show Suggested Answer

Suggested Answer: A

by Carin at Jun 21, 2026, 01:18 AM

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Karl

4 days ago

Wait, are we sure about those numbers? Seems off.

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Emilio

9 days ago

Definitely not 7.50%, that's way too high!

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Tuyet

15 days ago

I think it’s 2.50%.

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Pearlene

20 days ago

Net profit margin is calculated as net income divided by total revenues.

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Yolando

25 days ago

I’m a bit lost on the percentages. Did we use the same total revenues for all calculations?

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Alison

1 month ago

I practiced a similar question last week, and I think the answer was around 3%.

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Jacinta

1 month ago

I think the net profit margin is net income divided by total revenues, so it should be straightforward.

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Mel

1 month ago

I remember we calculated net profit margin in class, but I’m not sure if I got the formula right.

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