Using the information below,identify the mathematical equation used to find total profit.
S= Selling price per unit;
V= Variable cost per unit;
F= Total fixed costs;and
Q= Quantity of units produced and sold
A)(S/Q) -(V/Q) - F
B)(S * Q) - (V * Q) - F
C)[(S + V) * Q] - F
D)S - (V * Q) - (F * Q)
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Total profit is calculated by subtracting total variable costs and total fixed costs from total revenue. Total revenue is calculated by multiplying selling price per unit by quantity of units produced and sold. Total variable costs are calculated by multiplying variable cost per unit by quantity of units produced and sold. Total fixed costs are given. Therefore, the correct equation is (S * Q) - (V * Q) - F.

Using the Information Below,identify the Mathematical Equation Used to Find