The formula Total revenue − Total cost or [(Unit price × Quantity sold) − (Fixed cost + Variable cost)] represents
A) the value equation.
B) the sales ratio.
C) average revenue.
D) the break-even point.
E) the profit equation.

Question

Quizplus · Accepted Answer

The formula represents the profit equation, which calculates profit by subtracting total costs from total revenue.

The Formula Total Revenue − Total Cost or [(Unit Price