Topic 1.3.2 Business revenues,costs and profit Flashcards

1
Q

What is the formula for revenue in Business?

A

Revenue=Selling price times number of products sold

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2
Q

What is the formula for fixed costs?

A

Fixed costs=Cost of production-(variable cost per unit times number of units sold)

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3
Q

What is the formula for variable cost?

A

Variable costs=Variable cost per unit times number of units sold

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4
Q

What is the formula for total costs?

A

Total costs=Fixed costs+variable costs

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5
Q

Formula for profit?

A

Profit=Revenue-total costs

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6
Q

Formula for Break-even level of output

A

Break-even level of output=Fixed costs divided by selling price - variable cost per unit

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7
Q

Formula for margin of safety

A

margin of safety=Actual output-break even output

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