Provide an Example of a Virtual Organization

question 8

Essay

Provide an example of a virtual organization.

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Definitions:

Operating Income

Profit generated from normal business operations, calculated as sales minus cost of goods sold and operating expenses.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent or salaries.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, used to determine how sales affect profitability.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core business operations.