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SGS Business 1.3.2 Business Revenue costs and Profit

Total questions: 14

Worksheet time: 14mins

Name
Class
Date
1.

Which option is the correct formula to calculate total sales revenue?

a)

Selling price per unit x output sold

b)

Total fixed costs + total variable costs

c)

Unit cost x output

d)

Total inflows - total outflows

2.

The table below gives information about two different products sold by a business. Which one of the following is the correct sales price per unit for product B?

a)

£2.50

b)

£1.25

c)

£0.80

d)

£0.40

3.

A break even diagram for Business X is below. Based on Which one of the following is the correct value of its fixed costs at 3,000 units?

a)

£20,000

b)

£40,000

c)

£50,000

d)

£90,000

4.

Using the break even diagram shown in question 3, if Business X’s actual sales were 3,000 units, which of the following would be its correct margin of safety?

a)

0 units

b)

1,000 units

c)

2,000 units

d)

3,000 units

5.

A business has an agreed overdraft limit of £10,000, which it has used 75% of, on average, throughout the year. The interest rate on the overdraft facility is 15% per annum. Which option represents the amount of interest the business paid this year on its overdraft?

a)

£1,125

b)

£1,500

c)

£7,500

d)

£8,625

6.

The graph below shows the number of customers that visited a hairdressing business during one trading week. The average sales price per customer is £30. Using this information what is the business’s average daily trading revenue to the nearest £ is:

a)

£43

b)

£909

c)

£1,272

d)

£6,360

7.

Last year, a business made £300,000 profit from sales revenue of £750,000. Its total variable costs equalled £125,000. What was the value of the business’s fixed costs?

a)

£175,000

b)

£325,000

c)

£450,000

d)

£625,000

8.

If the business in question 7 sold 100,000 units during the year, its variable cost per unit equalled:

a)

£0.80

b)

£1.25

c)

£3.00

d)

£7.50

9.

A business takes out a bank loan of £15,000. The loan will be repaid over 3 years, with a monthly repayment of £500. What is the total interest the business will pay for this loan?

a)

£1,500

b)

£3,000

c)

£15,500

d)

£8,000

10.

A small business has fixed costs of £24,000 and an average sales price per unit of £9. If the variable cost per unit is 1/3 of the sales price per unit, which of the following is the business’s break even point in units?

a)

2,000 units

b)

2,667 units

c)

4,000 units

d)

8,000 units

11.

The small business, in question 10, expects that its fixed costs will increase by 25% next year. To overcome this change, the business plans to increase its sales price per unit by 100%. Its variable cost per unit is expected to remain as 1/3 of the sales price per unit. Which one of the following is the business’s break even point in costs/revenue?

a)

£30,000

b)

£36,000

c)

£45,000

d)

£90,000

12.

Which two of the following statements best describe the term break even? Select two answers:The point where:

a)

The business is just making a profit

b)

Total revenue and total fixed costs are the same

c)

The business is making neither a profit or loss

d)

Total costs are higher than total revenue

e)

Total revenue and total costs are equal

13.

In which two of the following situations would a business be in a loss making situation? Select two answers: Where:

a)

Total revenue is greater than the sum of total fixed costs and total variable costs

b)

Total revenue is less than total variable costs and total fixed costs

c)

Total fixed costs and total variable costs are lower than total revenue

d)

Total costs are less than total revenue

e)

Total costs are higher than total revenue

14.

The correct formula to calculate interest on loans as a % is:

a)

(Total repayment–borrowed amount) x 100

Borrowed amount

b)

(Borrowed amount - total repayment) x 100

Borrowed amount

c)

(Total repayment–borrowed amount) x 100

Total repayment

d)

(Borrowed amount - total repayment) x 100

Total repayment