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If an organization wants to make a profit, it must generate more sales revenue than the total costs ...

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If an organization wants to make a profit, it must generate more sales revenue than the total costs ...

If an organization wants to make a profit, it must generate more sales revenue than the total costs it incurs. Which of the following is not a correct expression of the profit equation?

▸ Operating income = Sales revenue - Discretionary costs - Fixed costs

▸ Operating income = [Contribution margin per unit × # units sold] - Fixed costs

▸ Operating income = Sales revenue - Total variable costs - Total fixed costs

▸ Operating income = [(Sales price per unit - Variable cost per unit) × # units sold] - Fixed cost

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Managerial Accounting

Edition: 4^th

Author: Davis

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