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You continue increasing production as long as the marginal income remains positive.

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Q: How do you determine number of units to produce to maximize operating income?
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Related questions

After gross profit is calculated operating expenses are deducted to determine?

net operating income


How does income taxes affect net cash flow?

An individual's net income is used to determine how much income tax is owed. ... cash flows from operating activities ...


What is the distinction between operating and non operation income?

Income which is generated by normal business basic operating activities is called net operating income while other income then operating income is called non operating income like interest income or dividend income etc.


How do you calculate net operating income?

Total operating income less total operating expense = net operating income (or loss if the expenses were higher)


Cost to income ratio?

operating expenses/operating income


What is the difference between operating income and non-operating income?

Operating income is that income which is earned through primary business activity while non operating income is that part of income which is not generated through primary operations of business like interest income, dividend income etc.


What is targets net income?

Target Net income = (Target Operating income)-(Target Operating income x Tax rate) Target operating income = (Revenues-Variable costs)- Fixed Costs


What is the target net income?

Target Net income = (Target Operating income)-(Target Operating income x Tax rate) Target operating income = (Revenues-Variable costs)- Fixed Costs


How do you calculate total operating income?

Gross ProfitLess: Operating expensesOperating income


Formula for Total operating income?

how to calculate total operating income in Manufacturing Sector


What is the difference between ordinary income and operating income?

Ordinary income refers to any income that is not capital gain. Operating income is how much revenue a company will profit.


How making more products that can be sold in a period can increase a companys operating income?

The operating income increases when a company makes more products than it can sell in a period. It is cheaper to produce more at one time and the profits increase because the price stays the same.