Sales, costs and revenue

• What is sales volume?

  The number of units sold by a business
• What is sales revenue?

  The value of units sold by a business
• How does sales revenue usually change with sales volume?

  Sales revenue usually increases as sales volume decreases
• What complicates the process of sales revenue and costs?

  The wider the business portfolio of products
• What is demand?

  The amount of product customers are willing to buy
• What are revenues in the context of sales?

  The amount of value customers actually buy
• What are the factors that affect demand?

  • Prices
  • Incomes
  • Tastes
  • Competitor actions
  • Social factors
  • Seasonal factors
  • Demographics
  • Socioeconomic factors
  • Government decisions
• How can government decisions affect demand?

  By changing factors like minimum wage
• What happens to demand when minimum wage increases?

  Demand increases due to more disposable income