Sales | Theme 2 Flashcards
Theme 2
1
Q
Two ways sales can be measured
A
Volume (how many sold) or value (revenue)
2
Q
Formula for sales
A
Price x quantity OR volume sold x average selling price
3
Q
What is a variable cost?
A
Costs which change as output rises. Lower risk for a start-up, no sales = no variable costs
4
Q
What is a fixed cost?
A
Costs which do not change when output varies. Higher risk for a start-up
5
Q
Formula for profit
A
Total sales - total costs
