2.2.2 Sales, revenue and costs Flashcards
1
Q
How do you calculate sales revenue?
1
A
- Sales volume x selling price
2
Q
What are two ways a business can boost their revenue?
2
A
- ^Selling price
- ^Sales volume
3
Q
What are the ways of boosting a firms revenue dependent on?
1
A
- PED
4
Q
What is sales volume?
1
A
- Nb. of units sold
5
Q
How do you calculate total costs?
1
A
- Fixed costs + variable costs
6
Q
What are fixed costs?
1
A
- Costs that don’t vary directly with lvl of output
7
Q
What are examples of fixed costs?
4
A
- Rent
- Heating/lighting
- Salaries
- Interest charges
8
Q
What are examples of variable costs?
4
A
- Raw mats
- Packaging
- Piece-rate-labour
- Commission (%on sales)
9
Q
What should a business with high fixed costs do and why?
2
A
- Max sales volume
- Fixed costs spread over ^units of output
