Business 2.2.2 Sales, Revenue and Costs

• Sales Volume = Sales Revenue / Selling Price ( units )
• Sales Revenue = Selling Price x Sales Volume ( currency £ )
• What is a definition of fixed costs?

  Costs that don’t change in relation to output / sales.
• What are some examples of fixed costs?

  • Rent
  • Salaries
  • Interest of a loan
  • Insurance
• What was the definition of variable costs?

  Costs that do change in relation to output / sales.
• What are examples of Variable Costs?

  • Raw Materials
  • Packaging
  • Commission Payments
• To find Total Fixed Costs and Total Variable Costs you add all of them together.