Which equation shows the organisation's relationship between price and profit?
A)Total variable costs + total fixed costs = sales - profits
B)Price = profit per item × number of units sold
C)(Price × quantity sold) - total costs = profits
D)(Price - profits) × total costs = sales
E)Total costs = (price × quantity sold) - profits

Question

Quizplus · Accepted Answer

This equation shows the relationship between price and profit by taking into consideration the quantity sold and subtracting the total costs (fixed and variable) from the revenue generated by the sale of those products. The result is the profit earned by the organization.

Which Equation Shows the Organisation's Relationship Between Price and Profit