measurements and importance of profit Flashcards
(9 cards)
1
Q
demand
A
- amount of a product that customers are actually prepared to buy
- varies
2
Q
factors effecting demand
A
- price
income
competitors
seasonal changes
3
Q
ways to increase revenue
A
increase amount should
make higher selling price
4
Q
variable costs
A
- cost which varies as output varies
5
Q
fixed costs
A
costs that dont change when output varies
6
Q
example of variable costs
A
raw materials
marketing costs
7
Q
example of fixed costs
A
rent
salaries etc c
7
Q
total costs formula
A
fixed costs + variable costs
8
Q
profit formula
A
total sales - total costs
