2.2.2 - SALES REVENUE AND COSTS Flashcards
1
Q
What is the formula for Sales Volume?
A
Sales Volume = Sales Revenue / Selling Price
2
Q
What is the Formula for Sales Revenue?
A
Sales Revenue = Sales Price X Sales Volume
3
Q
What are Fixed Costs?
1 example
A
costs that DO NOT vary with the level of output
e.g. rent
4
Q
What are Variable Costs?
example
A
costs that DO VARY with level of output
e.g. raw materials, wages
5
Q
What is the Formula for Total Variable Cost?
A
Total Variable Costs = VC per Unit X Quantity of Sales
6
Q
What is the Formula for Total Costs?
A
TC = VC + FC
