Revenue, costs and profit 1

What is the equation for revenue?

• Price x Quantity
• Price x Profit
• Profit x Quantity
• Price + Quantity

If the total cost of making 13 cars is £26,000 then what is the average cost?

• £2000
• £1000
• $2000
• $1000

What is the definition of variable costs?

• a cost that varies with the level of output
• a cost that varies
• a worker's wages
• The range of Jaffa cake's elasticity

If the total variable costs = £562 and the total fixed costs = 473 then what is the total cost?

• £1045
• £1035
• £1037
• £1033

If the total revenue = £489 and the total costs = £241 what is the profit made?

• £248
• £246
• £258
• $248

If the total revenue = £639 and the total costs = £427 what is the profit made?

• £212
• £202
• £222
• $212

Which one of the following is the correct formula to calculate a firm’s variable cost per unit?

• Total costs / output

• Total variable costs / output

• Output / total costs

• Output / total variable costs

The fixed costs of a business are £300,000 per year and variable costs are £2.00 per unit. The business sells 200,000 units per year at a selling price of £5.00. The profit made per year is:

• £300,000

• £600,000

• £1,000,000

• £1,500,000

The chart below shows the weekly breakdown of total costs for a small business. Based on this information, the weekly value of variable costs as a percentage of weekly total costs is:

• 20%

• 25%

• 80%

• 400%

Which one of the following is the correct formula to calculate total costs?

• Total costs minus total variable costs

• Total fixed costs plus total variable costs

• Total costs plus total variable costs

• Total fixed costs minus total variable costs