Worksheets1.3.2 - Business revenues, costs & profits (PART C)
Total questions: 13
Worksheet time: 7mins
The correct formula to calculate interest on loans as a % is:
Total repayment – borrowed amount x 100
Borrowed amount
Borrowed amount – total repayment x 100
Borrowed amount
Total repayment – borrowed amount x 100
Total repayment
Borrowed amount – total repayment x 100
Total repayment
Which one of the following is the correct formula to calculate a firm’s variable cost per unit?
Total costs/output
Total variable costs/output
Output/total costs
Output/total variable costs
The fixed costs of a business are £300,000 per year and variable costs are £2.00 per unit. The business sells 200,000 units per year at a selling price of £5.00. The profit made per year is:
£300,000
£600,000
£1,000,000
£1,500,000
The chart below shows the weekly breakdown of total costs for a small business.
20%
25%
80%
400%
Which one of the following is the correct formula to calculate total costs?
Total costs minus total variable costs
Total fixed costs plus total variable costs
Total costs plus total variable costs
Total fixed costs minus total variable costs
Which one of the following variables is often not shown on a break even diagram?
Total revenue
Total costs
Total variable costs
Output
A business negotiates a bulk buying discount with its suppliers. The immediate effect on the business of this action will be:
Sales revenue will fall and profits will increase
Sales revenue will remain the same and profits will increase
Sales revenue and profits will fall
Sales revenue will remain the same and profits will fall
A break even diagram for business A is shown here
At 500 units of output, profit is shown as the distance between:
A and B
A and C
A and D
B and C
A business sells 12,000 units per year. Fixed costs per year are £50,000 and variable costs are £2.50 per unit. The business’s total costs are:
£30,000
£54,800
£62,000
£80,000
Which of the following best defines the term variable cost? A cost which:
Stays the same regardless of output
Changes according to output
Changes with time
Are only paid when the business first sets up
A small business made £20,000 sales revenue this month. This is expected to increase by 10% next month. Its total costs are estimated to equal 25% of its revenue. The business’s profit for next month is forecast to be:
£5,500
£15,000
£16,500
£22,000
Which two of the following are business key terms that have the same meaning as revenue?
Select two answers:
Income
Turnover
Profit
Cash inflows
Receipts
Which two of the following would result in a business making a profit?
Select two answers:
The business is operating above its break even point
The margin of safety is negative
The business’s total costs are higher than its total revenue
Total revenue is lower than the business’s total variable costs
The margin of safety is positive
