meausring profit Flashcards
1
Q
what is revenue?
A
how much a business makes
2
Q
how do you work out revenue?
A
how much your selling it for x how much you sold
3
Q
what is variable cost?
+ how do you work out it out
+ 4 examples
A
variable= is cost that changing directly in proportion to output
variable unit x how much units sold
variable units examples:
raw materials
packaging
wages of staff (overtime)
power
4
Q
what is fixed cost?
A
cost that doesn’t change
for e.g rent, salary and car.
5
Q
how do you workout total cost?
A
fixed cost + variable cost
6
Q
how do you work out profit?
A
total revenue - total cost
