A not-for profit nursing home has total expenses of 20, Financial Management

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A not-for profit nursing home has total expenses of 20

A not-for profit nursing home has total expenses of $20 million. Sales tax in the state is 7%. Expenses are broken down into salaries ($12 million), supplies ($6 million), and pharmacy ($2 million). The benefit received by the nursing home from the sales tax exemption assuming that pharmacy items are exempt from state sales tax is?

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Financial Management: A not-for profit nursing home has total expenses of 20

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