Worksheets2. Understand how businesses make a profit.
Total questions: 20
Worksheet time: 15mins
Give the formula for calculating revenue by choosing the correct words and inserting them in the right place:
Revenue = Number of sales x ............................
Fixed costs
Price per unit
Start-up costs
Variable costs
In a month , a business making computer desks sells 300 desks. The price of each desk is £30. What is their total revenue per month?
£90 per month
£900 per month
£9,000 per month
£90,000 per month
In a month , a business making computer desks sells 300 desks. The price of each desk is £30.
If they sell the same number every month, what is their total annual revenue?
£108
£9,000
£18,000
£108,000
Kamila has a van and sells ice lollies and candy floss at fairgrounds. The ice lollies sell for £1.00 and sticks of candy floss for £1.50. Yesterday Max sold 200 ice lollies and 300 bags of candy floss. What is his total revenue?
£650
£6,500
£1,500
£1,200
Which TWO of the following are sources of revenue for a charity shop?
Advertising the shop
Donations from the public
Paying rent for the shop
Selling clothes
Collection items to sell
Last week a charity shop held a book and DVD fair. It sold 1,200 books at 25p each and 500 DVDs at 20p each. Calculate the total revenue it earned.
£40
£400
£425
£450
A small business sells personalised T-shirts. Each one retails for £15. The business sold 10,000 T-shirts last year. Calculate the revenue for the business.
Revenue = 10,000 x £15 = £1,500
Revenue = 10,000 x £15 = £15,000
Revenue = 10,000 x £15 = £150,000
Revenue = 10,000 x £15 = £1,500,000
Jake is a greengrocer. Which TWO of these are items of expenditure for a greengrocer?
Stock for the shop
A bank loan for an extension
Wages for an assistant
Sales revenue
Interest on savings account
Lucy runs a nail bar. Which TWO figures show her expenditure items this month?
Rent £1,000
Product sales £200
Income from manicures £2,600
Wages £1,400
Gary is a window cleaner. Last year his revenue was £40,000 and his expenditure was £10,000. Did he make a profit or loss?
Profit
Loss
The formula used to calculate the revenue earned for each type of item sold by a business is:
Revenue = number of sales x (a)
The term relates to all the money the business pays out.
Revenue
Expenditure
These costs have to be paid whether the business is 'busy' or 'quiet' .
Variable costs
Fixed costs
Fixed costs are known as:
Overheads
Start up costs
Direct expenses
Over heads are the every-day ....................of a business
start up costs
running costs
If revenue is greater than the cost of making or obtaining the items and running the business, then the owner makes a:
Profit
Loss
If expenditure is greater than the revenue, then the owner makes a:
Loss
Profit
if a business sells 1000 small boxes of chocolates at £4.00 each, the revenue will be:
£400
£1000
£4000
Rent and business rates
Staff wages
Utility bills (gas, electric and power)
Telecommunications links and website maintenance
Advertising and printing costs
These costs are examples of:
Variable costs
Overheads
Start-up costs
Raw materials/components/packaging
Stock items for resale
Are examples of:
Fixed costs
Variable costs
Direct costs
Indirect costs
