1.3.2 Business Revenues, Costs and Profits

Which two are examples of variable costs? (2 answers)

• Rent

• Raw materials

• Hourly employee pay

• Insurance

A business has a total revenue of £187,000 and a total cost of £166,000, has it made a profit or a loss? (1 answer)

• £187,000 profit

• £21,000 loss

• £21,000 profit

• £166,000 loss

A business has a total revenue of £162,000 and a total cost of £175,000. Therefore, it has made a profit of £13,000. (1 answer)

• True

• False

A business sells a product for £28, has a variable cost per unit of £13, and fixed costs of £9,000. What is the break-even point in revenue? (1 answer)

• £600

• £16,800

• £12,300

• £4,800

The formula to calculate total costs is? (1 answer)

• Fixed Costs x Variable Costs

• Fixed Costs / Variable Costs

• Variable Costs / Fixed Costs

• Fixed Costs + Variable Costs

If a business sells 3209 products for £12 each, what would its total revenue be? (1 answer)

• £41,674

• £38,508

• £29,592

• £67,909

A business has taken a bank loan for £18,000 but has a total repayment of £24,000. What is the interest rate charged on the bank loan? (1 answer)

• 40.20%

• 25.25%

• 30.66%

• 33.33%

A business sells 4,328 products in a year. It has fixed costs of £23,500 and variable costs of £7 per unit. What is its total cost? (1 answer)

• £23,500

• £30,296

• £44,879

• £53,796

A business sells a product for £15, has a variable cost per unit of £8, and fixed costs of £7,000. It sells 1230 units. What is the margin of safety? (1 answer)

• 70

• 230

• 310

• 170

A business produces 10,200 products in a year and sells them for £12 each. The fixed cost is £42,000 and total costs equal £72,600. What is the variable cost per unit? (1 answer)

• £12

• £7

• £3

• £4