If an Organization Wants to Make a Profit,it Must Generate

question 103

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 x # units produced] – Variable cost
• B)Operating income = [Contribution margin per unit x # 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:

Built-In Fear

An innate or instinctive fear response, often to specific stimuli, that is considered to be a survival mechanism passed down through evolution.

Autonomic Arousal

Autonomic arousal refers to the activation of the autonomic nervous system, affecting physiological states such as heart rate and sweating in response to stimuli.

Cognitive Interpretation

The process of making sense of perceptions, sensations, and experiences through mental processing, often involving assigning meaning and integrating new information with existing knowledge.

Adaptive Value

The extent to which a trait or behavior increases the chances of survival and reproduction of an organism within its environment.