2.2.2 Sales, revenue and costs

Question 1

what is the formula for sales revenue?

Answer 1

sales revenue =
quantity (sales volume) x selling price

Question 2

what is sales volume?

Answer 2

sales volume = sales revenue / selling price

Question 3

what is the formula for fixed costs?

Answer 3

fixed costs = total cost / number of units sold

Question 4

what is the formula for variable costs?

Answer 4

variable costs = total quantity of output x variable cost per unit