Business 2: Operations, finance and influences on business

Calculate the revenue:

A business sells 420 products.

Selling price: £5

• £420

• £2,100

• £5

• £1,550

Calculate the revenue:

A business sells 800 products.

Selling price: £50

• £4,000

• £40,000

• £50

• £750

Calculate the revenue:

A business sells 250 products.

Selling price: £1.75

• £437.50

• £250

• £453.75

• £251.75

Rent is an example of a:

• Fixed cost

• Variable cost

• Insurance payment

• Gross profit

Stock is an example of a:

• Fixed cost

• Variable cost

• Premium cost

• Non-essential cost

Utility bills are an example of a:

• Fixed cost

• Variable cost

• Premium cost

• Unavoidable payment

Quantity sold x variable cost per unit =

• Total variable cost

• Revenue

• Profit

• Total cost

Fixed costs + variable costs =

• Total variable cost

• Net profit

• Cost of sales

• Total costs

A business invests £5,000 in a new machine. It generates £9,000 worth of income over 4 years.

What is the Average Rate of Return?

• 2%

• 12%

• 20%

• 22%

A business invests £10,000 into a smaller company. It generates £18,000 worth of income over 8 years.

What is the Average Rate of Return?

• 1%

• 10%

• 100%

• 15%