Business studies formulae

How would you calculate Total Revenue (TR)?

• Price x Quantity sold

• Price + Quantity sold

• Price / Quantity sold

• Price - Quantity sold

Total costs (TC) =

• Fixed costs - variable costs

• Fixed costs + variable costs

• Fixed costs / variable costs

• Fixed costs x variable costs

Profit = Total revenue (TR) minus

• Sales

• Variable costs

• Total costs

• Fixed costs

Net cash flow =

• Receipts x payments

• Payments / receipts

• Receipts - payments

• Payments x receipts

Answer explanation

Receipts = money coming in to the business (inflows)

Payments = money leaving the business (outflows)

The opening balance is .....

• The money in the bank at any time

• The money in the bank on the last day of the month

• The money in the bank on the first day of the month

• The money left after all the bills are paid

Opening balance + Net cash flow flow =

The exchange rate is the amount of foreign currency £1 will buy

• True

• False

What is meant by contribution per unit?

• Fixed costs - selling price per unit

• Variable costs - Selling price per unit

• Selling price per unit - Fixed costs

• Selling price - Variable costs per unit

What is the formula for Margin of safety?

• Actual sales - Sales at Break Even Point

• Actual Sales + Sales at Breakeven Point

• Actual Sales x Sales at Breakeven point

• Actual Sales / Sales at Breakeven Point

What is the break-even output formula?

• Fixed costs / Contribution per unit

• Fixed costs / Selling price per unit

• Contribution per unit/ / Fixed costs

• Fixed costs / Variable costs per unit