Edexdel-sales, revenue and costs 2.2 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 formula
A
Selling price per unit - Variable cost per unit
11
Q
Profit formula
A
Revenue- Total costs
12
Q
Fixed costs examples
A
Rent
Insurance
13
Q
Variable costs example
A
Raw materials
Wages
14
Q
Monthly labour cost formula
A
Monthly/Number of workers
Price of workers/ Answer to first part
