If an Organization Wants to Make a Profit, It Must

question 126

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 - Fixed cost per unit) × # units produced] - Variable cost
• B)Operating income = [Contribution margin per unit × # units sold] - Fixed costs
• C)Operating income = Sales revenue - Total variable costs - Committed costs
• D)Operating income = Sales revenue - Product costs - Discretionary costs

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Definitions:

Obsessional Themes

Recurrent and persistent thoughts, impulses, or images experienced as intrusive and unwanted, often causing significant anxiety or distress, characteristic of disorders like obsessive-compulsive disorder.

Contamination

The presence of unwanted substances or impurities in a material, environment, or natural resource, compromising its quality or safety.

Worry

A cognitive process involving the repetitive contemplation of future events that may result in anxiety or stress.

Order/Symmetry

The desire or compulsion to arrange objects in a precise, orderly, or symmetrical manner, often observed in individuals with obsessive-compulsive disorder.