1.3.2 - Business revenues, costs and profits (PART B)

Which of the following is the correct formula to calculate total sales revenue?

• Selling price per unit x output sold

• Total fixed costs + total variable costs

• Unit cost x output

• Total inflows – total outflows

The table below gives information about two different products sold by a business.

Based on this information, which one of the following is the correct sales price per unit for product B?

• £2.50

• £1.25

• £0.80

• £0.40

A break even diagram for Business X is shown here.

Based on this information, which one of the following is the correct value of its fixed costs at 3,000 units?

• £20,000

• £40,000

• £50,000

• £90,000

Using the break even diagram, if Business X’s actual sales were 3,000 units, which one of the following would be its correct margin of safety?

• 0 units

• 1,000 units

• 2,000 units

• 3,000 units

A business has an agreed overdraft limit of £10,000, which it has used 75% of, on average, throughout the year. The interest rate on the overdraft facility is 15% per annum. Which one of the following represents the amount of interest the business paid this year on its overdraft?

• £1,125

• £1,500

• £7,500

• £8,625

The graph shows the number of customers that visited a hairdressing business during one trading week. The average sales price per customer is £30.

Based on this information, the business’s average daily trading revenue to the nearest £ is:

• £43

• £909

• £1,272

• £6,360

Last year, a business made £300,000 profit from sales revenue of £750,000. Its total variable costs equalled £125,000. The value of the business’s fixed costs was:

• £175,000

• £325,000

• £450,000

• £625,000

If the business in question 7 sold 100,000 units during the year, its variable cost per unit equalled:

• £0.80

• £1.25

• £3.00

• £7.50

A business takes out a bank loan of £15,000. The loan will be repaid over 3 years, with a monthly repayment of £500. The total interest the business will pay for this loan is:

• £1,500

• £3,000

• £15,500

• £18,000

A small business has fixed costs of £24,000 and an average sales price per unit of £9. If the variable cost per unit is 1/3 of the sales price per unit, which of the following is the business’s break even point in units?

• 2,000 units

• 2,667 units

• 4,000 units

• 8,000 units