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:

Dependent Variable

The variable being tested and measured in an experiment, which is expected to change as a result of manipulations of the independent variable.

Industrial Designer

A professional who develops concepts and designs for manufactured products, focusing on aesthetics, functionality, and usability.

Errors

Mistakes or inaccuracies in judgment, action, or calculation.

Experimental Group

In scientific research, the group of subjects who receive the treatment or condition that is being tested.