What Is the Formula to Calculate Operating Income

question 134

Multiple Choice

What is the formula to calculate operating income?

• A)(price × units sold) − (unit variable cost × units sold) − fixed cost
• B)(price × units sold) + (unit variable cost × units sold) + fixed cost
• C)(price + units sold) − (unit variable cost + units sold) − fixed cost
• D)(price − units sold) + (unit variable cost − units sold) + fixed cost

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