Operating Income Can Be Calculated By

question 39

Multiple Choice

Operating income can be calculated by:

• A)Dividing fixed costs by the contribution margin ratio.
• B)Multiplying fixed costs by the contribution margin ratio.
• C)Multiplying the margin of safety by the contribution margin ratio.
• D)Dividing the margin of safety by the contribution margin ratio.

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Definitions:

Selective Benefits

Rewards or incentives provided exclusively to members of an organization or group to encourage participation and membership, often seen in political or social clubs.

Incentives

Motivations or rewards designed to encourage specific actions or behaviors.

Government Programs

Initiatives and services provided by the government designed to support the welfare, safety, and needs of its citizens.

Interest Groups

Organizations formed to represent the interests and concerns of specific groups or industries to influence public policy and decision-making.