2.2.2 Sales, revenue and cost Flashcards
1
Q
What is sales volume?
A
The number of units the business sells
2
Q
What is sales revenue?
A
The amount of money generated from selling
3
Q
What is the formula for sales revenue?
A
Selling price x quantity
4
Q
What is fixed cost?
A
Costs that don’t change as output varies
5
Q
What is a variable cost?
A
Costs that do change as output varies
6
Q
What is the formula for total cost?
A
Fixed cost + total variable cost
7
Q
What is the formula for total variable cost?
A
Variable cost per unit x output
8
Q
What is the formula for profit?
A
Total revenue - total cost
