1.3.2 Business revenues, costs and profits - Word Drop

Revenue is the money a business earns from sales. Revenue is calculated as price multiplied by ______. If nothing is sold, revenue is ______. On a break-even diagram, the total revenue line starts at the ______.

Fixed costs do not change when output changes, for example ______, which covers damage or theft. Variable costs change with output, for example raw materials and the pay of workers paid per item, called ______. Total costs are fixed costs plus ______ costs. The total cost line is plotted ______ to the variable cost line.

Profit is total revenue minus total ______. A business makes a ______ when total costs are greater than total revenue. Interest is the cost of borrowing money, usually charged as a ______ of the loan. The ______ output is the level of output where total revenue equals total costs.

Margin of ______ is the difference between current output and break-even output. Above break-even output the business makes a profit, and below it a loss. If fixed costs rise, the total cost line shifts upwards and break-even output ______. If the selling price rises, the revenue line becomes steeper and break-even output falls.