Revenues, cost and profit

Question	Answer
What is Revenue? Image: fc1a08e7-fd3e-4374-8e9c-a87513285eeb (image/jpg)	Revenue is the amount of income received from selling goods or services over a period of time.
What is the formula to work out revenue?	Price x Quantity = Total revenue
What are the different types of costs?	Fixed Costs: They do not vary with the output produced by a business, e.g. salaries and business rates. Variable costs: They change directly with the number of products made, e.g. raw materials and labour.
What is the formula to work out variable costs? Image: 58589304-ac80-4b3a-9ed4-c9c38ab78705 (image/jpeg)	Variable costs = Cost of one unit x Quantity produced
Total Costs Image: a0902c24-ae83-498e-ab03-5763fb65cdcc (image/png)	Total Costs are all of the costs of the business. It can be calculated using the formula: Fixed Costs + Variable Costs = Total Costs
If the fixed costs are £400 and the variable costs are (£5 x 100) then what are the total costs?	£400 + £500 = £900
Profit and loss Image: 8de84a94-84fa-48e3-a474-3969b00e072f (image/jpg)	Profit occurs when revenues of a business are greater that its total costs. If a business's costs are greater than its revenues then it will make a loss.
What is the formula to work out profit and loss	Total Revenue - Total costs = Profit or Loss £1000 - £900 = £100 profit

Resource summary

	Created by Maxwell Pearcy over 7 years ago