Which term describes the income a business receives from selling its goods or services before any costs are taken away?
Revenue
Which term describes the sum of fixed costs and variable costs for a given level of output?
Total costs
What is meant by 'total costs per unit'?
The cost of producing one single item, including both fixed and variable costs
What is meant by 'selling price per unit'?
The amount a business charges customers for one single item
Which term describes the amount by which the total cost per unit is greater than the selling price per unit?
Loss per unit
Which formula is used to calculate the profit for a given level of output?
Total revenue minus total costs
Which statement describes the difference between revenue and profit?
Revenue is the income from sales, while profit is what is left after total costs are taken away
When does a business make a loss?
When total costs are greater than revenue
How is profit per unit calculated?
Selling price per unit minus total cost per unit
A business sells 500 units at £8 each. Its total costs are £3,000. What is its profit per unit?
£2
A business has total revenue of £7,200 and total costs of £5,400. What is its profit?
£1,800
A business has revenue of £9,500, fixed costs of £2,800 and variable costs of £3,700. What is its profit?
£3,000
A business made a profit of £650 last month with revenue of £2,000. What were its total costs?
£1,350
A business makes a profit of £4 per unit and its total cost per unit is £11. What is its selling price per unit?
£15
A business has total costs of £8,600 and revenue of £7,200. What is its loss?
£1,400
A product has a total cost per unit of £14 and a selling price per unit of £9. What does this mean for the business?
It makes a loss of £5 on each unit sold
A business sells 500 units at £14 each. What is its total revenue?
£7,000
A business has fixed costs of £700 per month and variable costs of £4 per unit. It sells 6,000 units a year at £9 each. What is its annual profit?
£21,600
A business makes £4 profit on each unit it sells. How many units must it sell to make a total profit of £2,000?
500
A business makes a profit of £2 on each unit it sells. Its variable cost per unit then rises by £3 and it cannot raise its selling price. What is the result?
It makes a loss of £1 on each unit sold
A business sells 400 units at £15 each. The total cost per unit is £9. What is its total profit?
£2,400
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