Which of the following formulas is used to compute operating income?
A)Operating income = Sales revenues − Depreciation expenses − Fixed expenses
B)Operating income = Sales revenues − Variable expenses − Fixed expenses
C)Operating income = Sales revenues + Fixed expenses − Target profit
D)Operating income = Sales revenues − Tangible expenses − Target profit

Question

Quizplus · Accepted Answer

The formula for operating income is calculated by subtracting the total variable expenses from the sales revenues and then subtracting the fixed expenses.

Which of the Following Formulas Is Used to Compute Operating