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If an Organization Wants to Make a Profit,it Must Generate

Question 109

Short Answer

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

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