A Level Business Theme 2 formula

What is the formula for calculating sales revenue?

• Price + Quantity Sold

• Price × Quantity Sold

• Total Costs - Total Revenue

• Fixed Costs + Variable Costs

A business sells 500 units of a product at £20 each. What is its total sales revenue?

• £10,000

• £25,000

• £5,000

• £15,000

How do you calculate average cost per unit?

• Total Revenue / Output

• Total Cost / Output

• Variable Costs / Quantity Sold

• Fixed Costs / Output

A company has total costs of £8,000 and produces 400 units. What is the average cost per unit?

• £20

• £25

• £10

• £15

Profit is calculated using which of the following formulas?

• Total Revenue + Total Costs

• Total Revenue × Total Costs

• Total Revenue - Total Costs

• Fixed Costs - Variable Costs

If a business has total revenue of £50,000 and total costs of £35,000, what is the profit?

• £85,000

• £15,000

• £50,000

• £35,000

What is the formula to calculate the break-even point in units?

• Fixed Costs ÷ Variable Costs per Unit

• Fixed Costs ÷ Contribution per Unit

• Total Costs ÷ Output

• Fixed Costs × Price

A firm has fixed costs of £4,000 and contribution per unit is £20. What is the break-even point?

• 100 units

• 200 units

• 400 units

• 600 units

Contribution per unit is calculated as:

• Selling Price - Variable Costs per Unit

• Selling Price ÷ Total Output

• Revenue - Fixed Costs

• Profit - Total Costs

A product sells for £50 and its variable cost per unit is £30. What is the contribution per unit?

• £80

• £20

• £30

• £50