What equation shows organizations the relationship between price and profit?
A) Total Variable Costs + Total Fixed Costs = Sales - Profit
B) Price = Profit per Item $\times$ Number of Units Sold
C) (Price $\times$ Quantity Sold)- Total Costs = Profits
D) (Price - Profits)$\times$ Total Costs = Sales
E) Total Costs = (Price $\times$Quantity Sold)- Profits

Question

Quizplus · Accepted Answer

This equation shows the relationship between price and profit by taking the price per unit multiplied by the quantity sold and subtracting the total costs to find the profits. This equation highlights the importance of finding the right price point to ensure that profits are maximized. Choices A, B, D, and E do not show this relationship as clearly or accurately.

What Equation Shows Organizations the Relationship Between Price and Profit ×\times×

What Equation Shows Organizations the Relationship Between Price and Profit $\times$