Solved

If an Organization Wants to Make a Profit,it Must Generate

Question 115

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents