2.2.2 - Sales, Revenue and Costs Flashcards
1
Q
What is sales volume?
A
Number of units sold
2
Q
What is sales revenue?
A
Total income earned from sales
3
Q
Revenue Calculation
A
Price x Quantity
4
Q
What are fixed costs?
A
Costs which don’t change and have to be paid regardless of the number of customers
5
Q
What are variable costs?
A
Costs which change with the output and have to be paid for each customer
6
Q
Total costs formula
A
Fixed + Total variable costs
7
Q
Profit Formula
A
Revenue - Total costs
