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
2
Q
What is the formula for fixed costs?
A
Fixed costs=Cost of production-(variable cost per unit times number of units sold)
3
Q
What is the formula for variable cost?
A
Variable costs=Variable cost per unit times number of units sold
4
Q
What is the formula for total costs?
A
Total costs=Fixed costs+variable costs
5
Q
Formula for profit?
A
Profit=Revenue-total costs
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
7
Q
Formula for margin of safety
A
margin of safety=Actual output-break even output