Which of the following equations highlights the cost-volume-profit relation?
A) Profit before taxes = [(Price x Unit variable cost) ÷ Sales volume in units] - Fixed costs.
B) Profit before taxes = [(Price - Unit fixed cost) x Sales volume in units] - Variable costs.
C) Profit before taxes = [(Price - Total variable cost) x Sales volume in units] - Fixed costs.
D) Profit before taxes = [(Price - Unit variable cost) x Sales volume in units] - Fixed costs.
E) Profit before taxes = [Price - (Unit variable cost - Unit fixed cost) ] x sales volume in units.
Correct Answer:
Verified
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