AQA Business Profit Quiz

What are variable costs?

• Costs that do not change when output changes?

• Costs that do change when revenue alters?

• Costs that have no relationship to output?

• Costs that change directly with output?

When drawn on a graph variable costs start at the origin? Is this statement true or false?

• True

• False

Sales revenue = _________ x average selling price. What is the missing term in the equation?

• Quantity

• Average selling price

• Total revenue

• Fixed costs

What are the two components of total costs?

• Fixed costs and variable costs

• Selling price and quantity

• Average selling price and quantity

• Total revenue and average cost

An increase in variable costs will always lead to an increase in the business's prices? Is this statement true or false?

• True

• False

Which of the following would be least concerned about profit?

• Marks and Spencer

• Norwich City Football Club

• Oxfam

• Barclays Bank

Calculate Total Revenue based on the given information: • Average price per unit = £33 • Quantity sold = 25 units • Total Revenue = ?

• £825

• £6

• £1.32

• £600

Calculate Selling Price based on the given information: • Total Revenue = £60 • Quantity sold is 10 units • Selling price = ?

• £825

• £6

• £1.32

• £600

Does a decrease in fixed costs always lead to a decrease in the business's prices? Is this statement true or false?

• True

• False

What is the formula for calculating Total Revenue?

• Total Revenue = Quantity Sold x Selling Price

• Total Revenue = Fixed Costs + Variable Costs

• Total Revenue = Selling Price - Cost Price

• Total Revenue = Quantity Sold + Selling Price