Revenue And Costs Flashcards
Give 3 examples of a fixed cost ?
Rent
Salaries
Bills
Insurance
What is a fixed cost ?
Costs that do not change depending on how much you sell
What is a variable cost?
Costs that change depending on how much you sell
Give examples of variable costs?
Packaging
Raw materials
Wages
Tax
What is the selling price?
The selling price is the price per unit
What is contribution ?
Contribution is the difference between selling price and variable costs
What is total revenue ?
Units sold X selling price
What is sales volume?
The amount of units that you have sold
What is sales revenue ?
The same as total revenue
Number of units sold X selling price
How are changes in revenue calculated ?
Percentage change
How do you calculate percentage change ?
Change
——– X 100
Original
What is total costs ?
Total costs is a businesses variable costs + their fixed costs
