Which of the Following Formulas Subtracts the Value of 3

question 29

Multiple Choice

Which of the following formulas subtracts the value of 3 from 6 and multiplies the outcome by 2?

• A) SUM(3,6)*2
• B) =6-3*2
• C) SUM(3,6,2)
• D) =(6-3)*2

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross profit, not including non-operating income and expenses, interest, and taxes.

Break-even Point

A situation where overall expenses and earnings balance out, leaving no profit or deficit.

Fixed Expenses

Recurring costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Operating Leverage

A financial ratio that measures the degree to which a firm can increase operating income by increasing revenue, highlighting the impact of fixed versus variable costs.