Key Formulas Flashcards
1
Q
Formula for total revenue
A
Price x quantity sold
2
Q
Formula for total costs
A
Fixed+ variable costs
3
Q
Formula for profit
A
Total revenue- total cost
4
Q
Formula for average unit cost
A
Total cost (TC) divided by output quantity (Q)
5
Q
Formula for fixed costs
Tc - vc
A
total cost- variable costs
6
Q
Formula for variable costs
A
Costs per unit/quantity sold X variable cost per unit
7
Q
Formula for average unit cost
A
Total cost divided by output (quantity)
8
Q
Formula for revenue
A
Sales x price
9
Q
What happens if costs are higher than revenue
A
If costs = higher than revenue, the business will make a loss = answer would be negative
