If an Organization Wants to Make a Profit, It Must

Multiple Choice

If an organization wants to make a profit, it must generate more sales revenue than the total costs it incurs.This relation can be expressed using which of the following profit equations?

A) Operating income = [(Sales price per unit - Variable cost per unit) × # units sold] - Fixed cost
B) Operating income = [Sales price per unit - Fixed cost per unit) × # units produced] - Variable cost
C) Operating income = Sales revenue - Total variable costs - Discretionary costs
D) Operating income = Sales revenue - Committed costs - Fixed costs