Which of the Following Equations Calculates the Operating Income

Multiple Choice

Which of the following equations calculates the operating income?

A) Operating Income = (Price × Units Sold) − (Unit Variable Cost × Units Sold) - Fixed Cost
B) Operating Income = Sales − Fixed Cost
C) Operating Income = (Unit Variable Cost × Units Sold) − Fixed Cost
D) Operating Income = Sales − Total Contribution Margin
E) Operating Income = (Unit Variable Cost × Units Sold) − (Price × Units Sold) + Total Contribution Margin