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1.3 Calculation practice

Total questions: 10

Worksheet time: 30mins

Name
Class
Date
1.

Last year, a business had fixed costs of £875,000 and revenue of 2.5 million. The business had total variable costs of £500,000 and sold 100,000 units. Calculate the total costs of the business last year.

a)

£1,375,000

b)

£1,475,000

c)

£23,625,000

2.

A business generated £250,000 of revenue last month. Its total costs were 35% of its revenue during that period. Calculate the total costs of the business last month.

a)

£67,500

b)

£162,500

c)

£87,500

d)

£250,000

3.

A business made a total revenue last year of £1,250,000 and its total costs were £666,000. Calculate the total profit the business made last year.

a)

£1,916,000

b)

£584,000

c)

£125,000

d)

£66,000

4.

In January a business has variable costs per unit of £9.50, it sold 275 units at a sales price of £15.50 and the weekly fixed costs totaled £2,400. Calculate the total profit or loss made in January.

a)

(£750)

b)

£750

c)

£1,862.50

5.

The total fixed costs of a business are £60,000. The sales price per unit is £20 and the variable costs per unit is £15. Calculate the break even.

a)

£12,000

b)

12,000 unit

c)

£120

d)

120 units

6.

Last month, the monthly fixed costs of a business were £38,000. The sales price per unit was £2.50 and the variable cost per unit was £1.00. This month, the variable cost per unit increased to £1.25, although fixed costs and the sales price per unit remained the same. Calculate the break even point this month.

a)

£3,400

b)

3,400 units

c)

£38,400

d)

38,400 units

7.

Last year, a business had a break even point of 250,740 units and actual sales of 295,950 units. Calculate the margin of safety.

a)

295,950

b)

546,690

c)

45,210

8.

A business had a break even point of 250 units and actual sales of 567 units. Calculate the margin of safety.

a)

317 units

b)

817 units

c)

£317

d)

£817

9.

In April, a business has estimated cash inflows of £68,500 and estimated cash outflows of £45,250. Calculate the estimated net cash-flow for April.

a)

£113,750

b)

£23,250

c)

(£23,250)

d)

£45,250

10.

In May, a business has estimated cash inflows of £148,500 and estimated cash outflows of £88,000. Calculate the estimated net cash-flow for May.

a)

£60,500

b)

£66,500

c)

£236,500