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AHIP AHM-520 Exam - Topic 3 Question 128 Discussion

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.....$5,000,000Total assets.....6,000,000Current liabilities.....2,500,000Total liabilities.....3,600,000Stockholders' equity.....2,400,000Fairway'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
A) 2.50%
B) 3.00%
C) 3.60%
D) 7.50%

AHIP AHM-520 Exam - Topic 3 Question 128 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 128
Topic #: 3
[All AHM-520 Questions]

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

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Suggested Answer: A

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

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Carlota
29 days ago
I feel like it’s option C, 3.60%. The numbers seem to fit better.
upvoted 0 times
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Velda
1 month ago
Agreed! I’m leaning towards option B, 3.00%.
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Shawn
1 month ago
I think the question is tricky. Net profit margin calculations can be confusing.
upvoted 0 times
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Tammi
1 month ago
I’m with Tuyet on this one!
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Karl
2 months ago
Wait, are we sure about those numbers? Seems off.
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Emilio
2 months ago
Definitely not 7.50%, that's way too high!
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Tuyet
2 months ago
I think it’s 2.50%.
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Pearlene
2 months ago
Net profit margin is calculated as net income divided by total revenues.
upvoted 0 times
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Yolando
2 months ago
I’m a bit lost on the percentages. Did we use the same total revenues for all calculations?
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Alison
3 months ago
I practiced a similar question last week, and I think the answer was around 3%.
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Jacinta
3 months ago
I think the net profit margin is net income divided by total revenues, so it should be straightforward.
upvoted 0 times
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Mel
3 months ago
I remember we calculated net profit margin in class, but I’m not sure if I got the formula right.
upvoted 0 times
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