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

question 127

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

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Definitions:

Social Institution

An organized structure within society that governs the behavior and expectations of its members, such as family, religion, and education.

Technological Changes

Refers to the advancements and innovations in technology that transform industries, societies, and the environment.

Workplace Impact

The influence that the work environment and conditions have on the productivity, health, and well-being of employees.

Pluralist Model

A theory of society that emphasizes the role of diverse and competing interest groups in shaping public policy and law.