Which of the following equations is CORRECT?
A) Sales revenues = Variable expenses - (Fixed expenses + Operating income)
B) Sales revenues - Variable expenses - Fixed expenses = Operating income
C) Sales revenues + Variable expenses + Fixed expenses = Operating income
D) Sales revenues - Fixed expenses = Variable expenses - Operating income

Question

Quizplus · Accepted Answer

This equation shows the correct calculation of operating income, by subtracting both variable and fixed expenses from sales revenues.

Which of the Following Equations Is CORRECT