1.3 Calculation practice

Last year, a business had fixed costs of £875,000 and revenue of 2.5 million. The business had total variable costs of £500,000 and sold 100,000 units. Calculate the total costs of the business last year.

• £1,375,000

• £1,475,000

• £23,625,000

A business generated £250,000 of revenue last month. Its total costs were 35% of its revenue during that period. Calculate the total costs of the business last month.

• £67,500

• £162,500

• £87,500

• £250,000

A business made a total revenue last year of £1,250,000 and its total costs were £666,000. Calculate the total profit the business made last year.

• £1,916,000

• £584,000

• £125,000

• £66,000

In January a business has variable costs per unit of £9.50, it sold 275 units at a sales price of £15.50 and the weekly fixed costs totaled £2,400. Calculate the total profit or loss made in January.

• (£750)

• £750

• £1,862.50

The total fixed costs of a business are £60,000. The sales price per unit is £20 and the variable costs per unit is £15. Calculate the break even.

• £12,000

• 12,000 unit

• £120

• 120 units

Last month, the monthly fixed costs of a business were £38,000. The sales price per unit was £2.50 and the variable cost per unit was £1.00. This month, the variable cost per unit increased to £1.25, although fixed costs and the sales price per unit remained the same. Calculate the break even point this month.

• £3,400

• 3,400 units

• £38,400

• 38,400 units

Last year, a business had a break even point of 250,740 units and actual sales of 295,950 units. Calculate the margin of safety.

• 295,950

• 546,690

• 45,210

A business had a break even point of 250 units and actual sales of 567 units. Calculate the margin of safety.

• 317 units

• 817 units

• £317

• £817

In April, a business has estimated cash inflows of £68,500 and estimated cash outflows of £45,250. Calculate the estimated net cash-flow for April.

• £113,750

• £23,250

• (£23,250)

• £45,250

In May, a business has estimated cash inflows of £148,500 and estimated cash outflows of £88,000. Calculate the estimated net cash-flow for May.

• £60,500

• £66,500

• £236,500