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Which of the following is not classed as revenue?

• Selling goods

• Loans received

• Providing services

• Trading

Total revenue rises in direct proportion to the quantity sold. At 0 units of sale, total revenue is £0. In this example, at 10 units of sale, revenue is £40. What is the selling price?

• £2

• £4

• £6

• £8

Example: Miranda anticipates that in March, the business will sell 400 burger packs at a selling price of £3.00 per pack. Calculate Muddy Boots revenue for March.

• £1,200

• £1,000

• £1,500

• £1,800

Calculate the percentage increase in revenue as a result of the increase in the sales price. The original revenue was £1,400 and the new revenue is £1,400. What is the percentage increase?

• 0%

• 5%

• 10%

• 15%

Identify 2 examples of variable costs. Costs which change as a result of changes in output.

• Fixed costs and variable costs

• Variable costs and fixed costs

• Variable costs and direct materials

• Direct materials and direct labor

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

• Raw materials

• Rent & rates for premises

• Wages linked to output

• Other bought in supplies

CHALLENGE: Categorise Muddy Boots costs shown on the next slide into FIXED and VARIABLE. Remember, fixed costs are those costs that stay the same no matter how many burgers the business makes and sells. Muddy Boots variable costs are spent on items that will need a greater quantity as the number of burgers made increases. Therefore, as output increases, the amount spent on variable costs also increases.

• Fixed costs remain constant regardless of output, while variable costs increase with output.

• Variable costs remain constant regardless of output, while fixed costs increase with output.

• Both fixed and variable costs increase with output.

• Both fixed and variable costs remain constant regardless of output.

Identify the cost type for (a)   .

• Fixed (F)

• Variable (V)