Topic 1.3.2 Revenue, costs and profits Flashcards
Profit Equation
total revenue -total cost
total fixed cost equation
all fixed costs added together
total variable costs equation
costs per unit X quantity sold
Total costs equation
fixed costs + variable costs
interest equation
total repayment- borrowed amount
—————————————- X 100
borrowed amount
revenue equation
selling price X quantity sold
fixed cost definition
Costs that do not change based on the output
Variable costs definition
Costs that change based on the output
What type of cost is insurance?
fixed cost
What type of cost is supplies?
variable cost
What type of cost is waste?
fixed cost
What type of cost is raw materials
Variable cost
What type of cost is wages
Fixed cost
What can you do to increase revenue?
Sell more products/ services
What happens to profit if your total costs increase
Profit goes down
