3.1.1 Revenue, Costs and Profit

What is revenue sometimes called?

• Profit

• Turnover

• Cost

• Expense

How is revenue calculated?

• Selling price per unit x quantity of units sold

• Total costs x number of units sold

• Selling price per unit + total costs

• Quantity of units sold - total costs

Which of the following is an example of a fixed cost?

• Raw material costs

• Packaging costs

• Rent on a factory

• Hourly wages

What are semi-variable costs?

• Costs that do not change with output

• Costs that rise and fall as output changes

• Costs that have both fixed and variable parts

• Costs that are only fixed

How is profit calculated?

• Total revenue + total costs

• Total revenue - total costs

• Total costs - total revenue

• Total revenue x total costs

What happens if a business's total costs are greater than its total revenue?

• The business will make a profit

• The business will break even

• The business will make a loss

• The business will have no change

What do shareholders often want as a reward for supporting the business?

• Long-term investment

• Short-term reward

• Increased costs

• Decreased revenue

What is the formula for calculating revenue?

• Revenue = Costs - Profit

• Revenue = Number of sales x Price

• Revenue = Fixed Costs + Variable Costs

• Revenue = Profit - Costs

Which of the following is an example of a fixed cost for MicroDave?

• £15 per microwave

• £200,000 per year

• £55 per microwave

• £25 per microwave

If MicroDave makes 20,000 microwaves a year, what is the cost per microwave?

• £55

• £25

• £15

• £500,000