If an organization wants to make a profit,it must generate more sales revenue than the total costs it incurs.This relation can be expressed using which of the following profit equations?
A) Operating income = [Sales price per unit – Fixed cost per unit x # units produced] – Variable cost
B) Operating income = [Contribution margin per unit x # units sold] – Fixed costs
C) Operating income = Sales revenue - Total variable costs - Committed costs
D) Operating income = Sales revenue - Product costs - Discretionary costs
Correct Answer:
Verified
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