Cost, Revenue and Profit - Year 9

What is a cost?

• Something the company receives

• The price of a product

• Something the company must pay

• Something the company sells

What is a variable cost?

• A cost which does not change

• A cost which they must pay even if they produce nothing

• A cost which changes the more or less the business produces

• A cost the business pays when they start

If Sam's Sandwiches use 25p of material for each sandwich, what will be their variable costs for 10 sandwiches

• 10 x 0.25 = £2.50

• 2.5 x 10 = £25

• 25 x 10 = £250

• 0.25/10 = 2.5p

What is the formula for Revenue?

• Total Sales + Costs = Revenue

• Number of Sales x Price per unit = Revenue

• Price per unit x Total Costs = Revenue

• Number of Sales - Total Costs = Revenue

If Wendy sells 50 hot dogs at £2 each. What is her revenue?

• £250

• £100

• £120

• £52

If Wendy sells 50 hot dogs at £2 each. What is her revenue?

• £250

• £100

• £120

• £52

Which cost is Fixed?

• Sandwiches

• Ingredients

• Utilities

• Stock

How do you calculate revenue?

• sales x price

• price x cost

• cost + sales

• sales - total price

How do you calculate "Total Costs"?

• fixed costs x sales

• sales + variable costs

• variable costs + fixed cost

• variable cost x fixed cost

What is another name for a business' sales revenue?

• Sales

• Costs

• Sales turnover, turnover or revenue

• Profit and Loss