3.2 Revenue generated by sales of the product or service

Front

What is revenue?

Back

Revenue is any money that a business makes from selling its goods and services.

Front

What are costs in a business context?

Back

Costs are anything that a business pays for.

Front

Why do businesses need revenue?

Back

Businesses need revenue to ensure that they can maintain their day-to-day operations and pay any business costs they have.

Front

Give an example of revenue for a florist shop.

Back

Selling flowers and delivery charges.

Front

Give examples of revenue for a web designer.

Back

Fee for designing a website and fee for maintaining or updating a website.

Front

How is revenue calculated?

Back

Revenue is calculated using the formula: Revenue = Selling price × Quantity sold.

Front

Calculate the revenue if a florist sold 482 bouquets of flowers for £10 each.

Back

The revenue would be £4,820.