9d - Assessment 1

Which of these gives us total costs?

• Indirect costs + direct costs

• Indirect costs + variable costs

• Direct costs + fixed costs

• Fixed costs + variable costs

A business sells T-shirts. Each T-Shirt retails for £8.00. The business sold 40,000 T-shirts last year. Calculate the total revenue for the business.

Which of the following would cause an increase in the variable costs of a manufacturer of wardrobes?

• The rent is doubled

• The cost of wood goes up by 10%

• The cost of wood goes down by 10%

• Insurance prices triple

The running costs of a business can be split into two types, indirect and direct

costs. Which type of cost is which?

Fixed costs are ________________ costs

Revenue can be calculated by: (2)

Revenue = Selling price x ____________________

Which of the following would cause an increase in the fixed costs of a manufacturer of wardrobes

• The rent is doubled

• The cost of wood goes up by 10%

• The cost of wood goes down by 10%

• A competitor opens up nearby

Fixed costs for a business are £178.60 and Variable costs are £66.50, what is the Total Cost?

If Rent was £25.50 per month

If Materials were £14.50 in April

If Heating and lighting were £25.50 in April

What would be the total costs in April?

Fixed Costs for a business are £175.50

Total Costs for a business are £190.00

What are the variable costs for the business?

Revenue – Total Costs

What is this a formula for:

• Profit

• Break Even

• Sales Revenue

• Income