Within the Methodist Houston Healthcare system, there was a concern of a decrease in gross profit margin and an increase in operating profit margin which could be attributed towards the change in the net profit margin. Based on the rise and fall of fluctuating prices it greatly affects how a facility sells and can eventually effect the outcome of possible sells. Overall through increasing or decreasing the overhead it will overall affect the company’s outcome. It is wise to set a fixed cost rate of sales so that it will allow the sales to adjust to the amount of production size. “Bloombury Information (2014) reports on a larger scale, the profit margin is an accounting ratio of company income compared with sales. The profit margin ratio can
