Edexdel-sales, revenue and costs Flashcards
1
Q
Sales volume
A
Number of units sold
2
Q
Sales revenue
A
Value of the units sold
3
Q
Sales revenue formula
A
Selling price x number of units sold
4
Q
Fixed costs
A
Costs that do not change as level of output changes
5
Q
Variable costs
A
Costs that vary directly with output
6
Q
Total costs formula
A
Fixed costs + Variable costs
7
Q
Total variable cost formula
A
Variable cost x quantity
8
Q
Average total cost
A
Total cost/ Quantity
9
Q
Variable cost per unit
A
Total variable cost/ Quantity
10
Q
Contribution
A
refers too product’s selling price minus the variable costs directly involved in producing that unit
11
Q
Contribution formula
A
Selling price per unit - Variable cost per unit
12
Q
Profit
A
Revenue- Total costs
