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WorksheetsBusiness revenue , costs and profit
Total questions: 14
Worksheet time: 10mins
( Quantity sold * selling price ) is the formula for which of the following ?
profit
gross profit
Revenue
fixed cost
Which one of the following best describes a fixed cost?
Changes directly with output
Stays the same regardless of output
Only needs to be paid once, when the business first starts-up
Needs to be paid once a month
Revenue - cost of sales is the formula for which of the following?
gross Profit
Total costs
Revenue
Total variable costs
The table below gives information about Business A.
Based on this information, Business A’s total fixed costs are:
£10,000
£30,000
£40,000
£70,000
A break even diagram for Business Y is shown here.
The line with a value of £50,000 at an output of 3,000 units is called:
Total revenue
Total costs
Fixed costs
Total variable costs
With reference to the break even diagram, Business Y’s break even point is:
700 units
1,000 units
2,000 units
3,000 units
If the actual sales of the business is 2,500 units, its margin of safety is:
0 units
500 units
1,500 units
1,800 units
At zero output on a break even diagram, the total cost line will always start:
At zero on both axes
Where the variable cost line starts
Where the fixed cost line starts
Where the total revenue line starts
The break even diagram here shows the forecast monthly break even situation for a small business.
Using the diagram, the total profit or loss the business expects to make at 1,000 units is:
£10,000
£14,000
£30,000
£40,000
A business increases its spend on promotion. The immediate effect of this action is:
The break even level of output will remain the same
The break even level of output will fall
The break even level of output will increase
The value of total costs will fall
Which one of the following is the correct definition of interest?
The reward for saving or the cost of borrowing
The value of one currency against another
The amount of money that a person has to spend on goods/services
The amount of money that is taken from earnings and is paid to the government
A small business takes out a bank loan of £7,000. The loan will be repaid over 5 years, with a monthly repayment of £125. The total interest the business will pay for this loan as a percentage of the total amount borrowed is:
6.67%
7.14%
93.33%
98.25%
Which two of the following are examples of variable costs?
Select two answers:
Salaries of management
Insurance
Rent
Raw materials
Packaging
Which two of the following are advantages to a business of having a high margin of safety?
Select two answers:
The business will be operating below its break even point
The business’s sales price will be consistently set at a high level
The business will have a larger gap between its current level of output and its break even point
The business will be producing small volumes of output
The business will have more flexibility in its pricing decisions
