1.3.2 Business Revenue, Costs and Profit Flashcards
(9 cards)
1
Q
Revenue Formula
A
Selling Price x Quantity Sold
2
Q
Total Costs Formula
A
Fixed Costs + Variable Costs
3
Q
Fixed Costs
A
Stay the same regardless of output
-Overheads
-Bills
-Utilities
-Salaries
4
Q
Variable Costs
A
Change depending on output
-Raw materials
-Ingredients
-Bought in components
5
Q
Gross Profit Formula
A
Revenue - Cost of Goods Sold
6
Q
Net Profit Formula
A
Gross Profit - Operating Expenses
7
Q
Break-Even
A
Occurs when Total costs= Total revenue
8
Q
Break-Even Formula
A
Fixed Costs/(Selling Price - Variable Costs)
9
Q
Margin of Safety Formula
A
Actual Output - Break-even Output
