SALES REVENUE & COSTS

• What is sales revenue?

  The total amount of money generated from sales of goods or services.
• What is the calculation for sales revenue?


  Sales price x quantity sold
• How do you calculate percentage change?

  change/original x 100
• What is cost?

  anything that a business has to pay For
• What are the 3 types of cost?

  Fixed cost

  Variable cost

  Total cost
• What is fixed cost?

  Cost that doesn't change with the level of output
• What is variable cost?

  Costs that change directly with the level of output
• What is total cost?

  the sum of variable and fixed cost
• What are examples of fixed cost?

  Salaries

  Insurance
• What are examples of variable cost?

  Raw materials

  Staff wages
• How to calculate total cost?

  TFC + TVC
• How to calculate fixed cost?

  TC - TVC
• How to calculate variable cost?

  TC - TFC

  TVC x Quantity
• Why might fixed cost be reduced?

  To have cheaper business premises

  To spend less on promotion
• Why might variable cost be reduced?

  To have cheaper raw materials

  Creating products in bulk