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:

Means of Production

The physical, non-human inputs like factories, machines, and raw materials used in the process of producing goods or services.

Class Exploitation

The manipulation or unfair use of a lower social class by a higher one, often for economic gain.

Parties

In Weber’s usage, are organizations that seek to impose their will on others.

Political Groups

Organizations or collectives that seek to influence public policy, political opinion, or government decisions based on specific ideological, economic, or social beliefs.