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Worksheets1.3.2 - Business revenues, costs and profits (PART B)
Total questions: 13
Worksheet time: 12mins
Which of the following is the correct formula to calculate total sales revenue?
Selling price per unit x output sold
Total fixed costs + total variable costs
Unit cost x output
Total inflows – total outflows
The table below gives information about two different products sold by a business.
Based on this information, which one of the following is the correct sales price per unit for product B?
£2.50
£1.25
£0.80
£0.40
A break even diagram for Business X is shown here.
Based on this information, which one of the following is the correct value of its fixed costs at 3,000 units?
£20,000
£40,000
£50,000
£90,000
Using the break even diagram, if Business X’s actual sales were 3,000 units, which one of the following would be its correct margin of safety?
0 units
1,000 units
2,000 units
3,000 units
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 one of the following represents the amount of interest the business paid this year on its overdraft?
£1,125
£1,500
£7,500
£8,625
The graph shows the number of customers that visited a hairdressing business during one trading week. The average sales price per customer is £30.
Based on this information, the business’s average daily trading revenue to the nearest £ is:
£43
£909
£1,272
£6,360
Last year, a business made £300,000 profit from sales revenue of £750,000. Its total variable costs equalled £125,000. The value of the business’s fixed costs was:
£175,000
£325,000
£450,000
£625,000
If the business in question 7 sold 100,000 units during the year, its variable cost per unit equalled:
£0.80
£1.25
£3.00
£7.50
A business takes out a bank loan of £15,000. The loan will be repaid over 3 years, with a monthly repayment of £500. The total interest the business will pay for this loan is:
£1,500
£3,000
£15,500
£18,000
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?
2,000 units
2,667 units
4,000 units
8,000 units
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?
£30,000
£36,000
£45,000
£90,000
Which two of the following statements best describe the term break even?
Select two answers:
The point where:
The business is just making a profit
Total revenue and total fixed costs are the same
The business is making neither a profit or loss
Total costs are higher than total revenue
Total revenue and total costs are equal
In which two of the following situations would a business be in a loss making situation?
Select two answers:
Where:
Total revenue is greater than the sum of total fixed costs and total variable costs
Total revenue is less than total variable costs and total fixed costs
Total fixed costs and total variable costs are lower than total revenue
Total costs are less than total revenue
Total costs are higher than total revenue
