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

question 95

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:

Inferential Statistics

A branch of statistics that uses a sample of data to make inferences about the general population from which the sample was drawn.

Hypothesis

A suggested reason for an occurrence, established as an initial phase for more detailed examination.

Testable Hypothesis

A statement that makes a prediction about the outcome of a study, which can be supported or refuted through experimental or observational evidence.

Ethical Consideration

Principles and guidelines that help ensure the rights, safety, and well-being of research participants are protected.