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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. This relation can be expressed using which of the following profit equations?
▸ Operating income = Sales revenue - Total variable costs - Committed costs
▸ Operating income = [Contribution margin per unit × # units sold] - Fixed costs
▸ Operating income = [(Sales price per unit - Fixed cost per unit) × # units produced] - Variable cost
▸ Operating income = Sales revenue - Product costs - Discretionary costs
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Managerial Accounting
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4
th
Author:
Davis
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Operating income = [Contribution margin per unit × # units sold] - Fixed costs
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