2.2.2 sales, revenues and costs

Question 1

definition sales revenue

Answer 1

money that goes into the business through sales

Question 2

definition variable cost

Answer 2

cost that varies eith the level of outcome

Question 3

defintion fixed cost

Answer 3

cost that does not vary with the level of outcome

Question 4

defintiion profit

Answer 4

more revenue than costs

Question 5

definition sales volume

Answer 5

quantity sold in a specific period of time

Question 6

sales volume (in units) formula

Answer 6

Sales volume (SV)= Sales revenue (SR) / Selling price (SP)

Question 7

sales revenue (in pounds) formula

Answer 7

Sales revenue (SR) = Selling price (SP) * Sales volume (SV)

Question 8

examples fixed costs

Answer 8

rent, mortgage, loan, insurance, leasing, salaries

Question 9

fixed costs in graph

Answer 9

straight line

Question 10

fixed costs on bank loan

Answer 10

1. percentage of the loan you are taking
2. the number you got from 1. added to original amount you borrowed
3. divide this number though months you have it

Question 11

variable costs examples

Answer 11

cost of stock sold, raw materials like electricity or water, fuel, packaging, wages

Question 12

totsl variable cost formula

Answer 12

total variable cost (TVC) = Average variable cost (AVC) * Quantity sold (SV)

Question 13

Total costs formula

Answer 13

Total costs (TC) = Variable cost (VC) + Fixed costs (FC)

Question 14

Total costs defintiton

Answer 14

sum of all costs in reaching a certain level of output

Question 15

formula to calculate changes

Answer 15

change / original * 100

Question 16

formula profit

Answer 16

Sales revenue - total costs