Revenue, costs and profit

Ronald McDonut sells 150 cakes a day for £2.50 each and it costs him £1.75 per donut to produce them. His total sales revenue is

• £2.50 per unit

• £112.50

• £375

• £262.50

Ronald McDonut sells 150 cakes a day for £2.50 each and it costs him £1.75 per donut to produce them. His total costs are

• £2.50

• £112.50

• £375

• £262.50

How much total profit did Ronald make on his donuts?

• £375

• £262.50

• £0.75 per donut

• £112.50

How much profit was made per donut?

• £2.50

• £1.75

• £0.75

• £112.50

If Profit = Revenue - Costs

then

• Costs = Revenue + Profit

• Costs = Profit + Revenue

• Costs = Revenue - Profit

• Costs = Profit - Revenue

Turnbull's Taxis earned a profit of £90 000 last year. The business made 16 000 journeys and charged an average fare of £15 per passenger. How much did it cost to run the business?

• £240 000

• £150 000

• £330 000

• £390 000

A negative profit is called

• A small profit

• Break even

• Profit minimisation

• A loss

If a business wants to increase its profits then it should aim to

• Lower its costs and lower its revenue

• Raise its costs and lower its revenue

• Raise its costs and raise its revenue

• Lower its costs and raise its revenue

What happens to business profits?

• Re-invested in the business

• Paid to shareholders

• Used to lower future prices

• They are taxed by the government

• Any of the above

Profits are

• The reward for a risk successfully undertaken

• A sign that consumers are being overcharged

• Calculated by selling price per unit x quantity sold

• Only possible for short periods before new competitors move in to the market