What Equation Shows Organizations the Relationship Between Price and Profit

question 131

Multiple Choice

What equation shows organizations the relationship between price and profit?

• A) Total Variable Costs + Total Fixed Costs = Sales − Profit
• B) Price = Profit per Item × Number of Units Sold
• C) (Price × Quantity Sold) − Total Costs = Profits
• D) (Price − Profits) × Total Costs = Sales
• E) Total Costs = (Price × Quantity Sold) − Profits

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Definitions:

Logical

Relating to or involving the process of reasoning and the use of the mind to analyze facts and make decisions based on evidence and sound principles.

Value Chain

A series of activities that a company performs to deliver a valuable product or service to its customers.

Channels of Distribution

The pathways through which goods and services flow from the producer to the consumer or end-user in the market.

Opportunity Creation

The process by which new business or investment opportunities are identified, developed, and exploited.