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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 can one determine the operating income on an income statement?

Operating income on an income statement can be determined by subtracting operating expenses from gross income. Operating expenses include costs directly related to the core business activities, such as salaries, rent, and utilities. This calculation shows how much profit a company generates from its primary operations before considering taxes and interest.


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 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 ...


How do you calculate operating income?

Operating income is calculated by subtracting operating expenses from gross income. Operating expenses include costs directly related to the production and sale of goods or services, such as wages, rent, and utilities. The formula for operating income is: Gross Income - Operating Expenses Operating Income.


How do you calculate operating expenses on an income statement?

Operating expenses on an income statement are calculated by adding up all the costs incurred in the day-to-day operations of a business, such as salaries, rent, utilities, and supplies. These expenses are subtracted from the revenue to determine the operating profit or loss.


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