Costs & sales

• What is the formula for total revenue (TR)?

  Total revenue = Quantity sold × Selling price
• What does the break-even point represent in business?

  It is where total revenue equals total costs
• If a business sells 12,000 units at a price of 12.45 each, what is the total revenue?

  Total revenue = $12000 \times 12.45$
• How do you calculate total revenue if you know the quantity sold and selling price?

  Multiply quantity sold by selling price
• What are the key components of sales in business?

  • Quantity of sales
  • Selling price per unit
  • Total revenue
• What is the relationship between total revenue and total costs at the break-even point?

  • Total revenue equals total costs
  • No profit or loss occurs