2.2.2 Sales Revenue And Cost Flashcards
Define sales volume
- Sales volume is the amount of sales expressed as a number of units sold
- e.g. 20 tonnes of wool
Define sales revenue
- Sales revenue is the amount of sales expressed as the total sum of money spent by consumers. It is the income earned by a business over a period of time, eg one month.
- e.g. £3 million expenditure on clothing
How can sales volume be calculated
Sales revenue / selling price
How can you calculate sales revenue
Selling price x quantity sold
Define revenue
Is the money coming in form the sales of goods and services
How do you calculate revenue
Selling price x quantity sold
How does revenue look like in a graph
Starts at 0 and slopes upwards /
How does fixed costs look like on a graph
Stays the same regardless of output so goes in a straight line -
How does variable costs look like on a graph
Starts at 0 and slopes up wards
How do you calculate total variable costs
Average variable cost x number of units
How do you al image total costs
Fixed costs + total variable costs
How does total costs look like on a graph
Starts at fixed costs and slopes upwards