1.6 Revenue, costs, profits, cash Flashcards
1
Q
Sales revenue=
A
Price x Quantity or Price x Sales Volume
2
Q
Average cost=
A
Total cost/ Quantity sold
3
Q
Total cost=
A
Fixed costs + Variable costs
4
Q
Profit=
A
Sales revenue- Total costs
5
Q
Define sales volume
A
Number of items sold in a given period
6
Q
What is the difference between fixed costs and variable costs?
A
Variable costs change with output, whereas fixed costs remain the same
7
Q
Define contribution and give its formula
A
Difference between the price of a good and the variable cost per unit. P- (VC/unit)
8
Q
Define the break-even point BEP and give its formula
A
9
Q
A
