2.2.2 Sales, Revenue, Costs

Question 1

Revenue formula

Answer 1

Sales revenue=Sales vol. X Selling price

Question 2

Total costs formula

Answer 2

Total costs=Fixed costs+Tot. Variable costs
-FC: costs that don’t change with level of output and have to be paid even if output is zero
-VC: costs directly linked to level of output. Increase as output increases visa versa