Profit - π Flashcards
1
Q
define cost
A
the money going out of the biz
2
Q
what is the equation to work out the cost
A
Fixed costs + Total variable cost
FC + TVC
3
Q
Define revenue
A
the money coming into the biz
4
Q
what is the equation to work out the revenue
A
quantity x price
Q X P
5
Q
What is the eqaution to work out the profit
A
profit = revenue - cost
DUHHHHHHHH
6
Q
Give a shorter equation to work out π
and
A
π = (QxC) - FC
(C=SP-VC)
Q - quantity
C- costs
FC - fixed cost
SP - selling price
VC - variable costs
7
Q
define surplus
A
means profit
8
Q
define deficil
A
means loss
