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?
A)Operating income = Sales revenue - Total variable costs - Total fixed costs
B)Operating income = Sales revenue - Discretionary costs - Fixed costs
C)Operating income = [Sales price per unit - Variable cost per unit x # units sold] - Fixed cost
D)Operating income = [Contribution margin per

Question

Quizplus · Accepted Answer

The expression in choice B incorrectly separates discretionary costs from fixed costs, whereas discretionary costs are typically a subset of fixed costs.

If an Organization Wants to Make a Profit,it Must Generate