2.2.2 Sales Revenue And Cost

Question 1

Define sales volume

Answer 1

• Sales volume is the amount of sales expressed as a number of units sold
• e.g. 20 tonnes of wool

Question 2

Define sales revenue

Answer 2

• Sales revenue is the amount of sales expressed as the total sum of money spent by consumers. It is the income earned by a business over a period of time, eg one month.
• e.g. £3 million expenditure on clothing

Question 3

How can sales volume be calculated

Answer 3

Sales revenue / selling price

Question 4

How can you calculate sales revenue

Answer 4

Selling price x quantity sold

Question 5

Define revenue

Answer 5

Is the money coming in form the sales of goods and services

Question 6

How do you calculate revenue

Answer 6

Selling price x quantity sold

Question 7

How does revenue look like in a graph

Answer 7

Starts at 0 and slopes upwards /

Question 8

How does fixed costs look like on a graph

Answer 8

Stays the same regardless of output so goes in a straight line -

Question 9

How does variable costs look like on a graph

Answer 9

Starts at 0 and slopes up wards

Question 10

How do you calculate total variable costs

Answer 10

Average variable cost x number of units

Question 11

How do you al image total costs

Answer 11

Fixed costs + total variable costs

Question 12

How does total costs look like on a graph

Answer 12

Starts at fixed costs and slopes upwards