2.2.2 Sales, revenues and costs

• Average cost - the cost of producing one unit.
• Fixed costs - costs that do not change based on output.
• Revenue - the amount of income for a business based on sales.

  Revenue = price x quantity sold
• Total costs - all costs of a business.

  Total costs = total variable costs + total fixed costs
• Variable costs - costs that vary depending on output.
• Sales volume - the amount of units sold.

  Sales volume = revenue / price