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? O a. Operating income = [(Sales price per unit-Variable cost per unit) x # units sold)- Fixed cost O b. Operating income = [Sales price per unit - Fixed cost per unit) x # units produced] -Variable cost Oc Operating income Sales revenue - Total variable costs - Discretionary costs O d. Operating income Sales revenue - Committed costs - Fixed costs
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? O a. Operating income = [(Sales price per unit-Variable cost per unit) x # units sold)- Fixed cost O b. Operating income = [Sales price per unit - Fixed cost per unit) x # units produced] -Variable cost Oc Operating income Sales revenue - Total variable costs - Discretionary costs O d. Operating income Sales revenue - Committed costs - Fixed costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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?
O a. Operating income = [(Sales price per unit - Variable cost per unit) x #units sold] - Fixed cost
O b. Operating income = [Sales price per unit - Fixed cost per unit) x # units produced] -Variable cost
Oc Operating income Sales revenue - Total variable costs - Discretionary costs
O d. Operating income - Sales revenue - Committed costs - Fixed costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14471910-6b4c-414d-89e3-633d0725a541%2Ff0b86a8a-4cd0-497e-8174-ed83b1508295%2Fc633xs4i_processed.png&w=3840&q=75)
Transcribed Image Text: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?
O a. Operating income = [(Sales price per unit - Variable cost per unit) x #units sold] - Fixed cost
O b. Operating income = [Sales price per unit - Fixed cost per unit) x # units produced] -Variable cost
Oc Operating income Sales revenue - Total variable costs - Discretionary costs
O d. Operating income - Sales revenue - Committed costs - Fixed costs
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