2.2.2 sales revenue Flashcards
what does demand mean
the amount of a product that customers are prepared to buy
what is sales volume
sales volume is the amount of sales expressed as a number of units sold
what is sales revenue
sales revenue is the amount of sales expressed as the total sum of money spent by consumers
what is the calculation sales volume
sales revenue/selling price
what is the calculation for sales revenue
selling price x quantity sold
what is revenue
it is the money comming in from the sales of goods and services
what is the calculation for total revenue
average price x quantity sold
what is fixed costs
fixed costs stay the same regardless of output e.g rent and manager’s salaries
what are 3 examples of fixed costs
- rent & rates
- salaries
- advertising
what is variable costs
variable costs change in relation to the number of items produced e.g raw materials
what are some examples of variable costs
- raw amterials
- bought in stock
- wages
what is a semi variable cost
a cost that consists of both fixed and variable elements
what are some examples of semi-variable costs
- telephone bill
- payments to the sales force
what is total costs
fixed costs+total variable costs
