Rearranging the revenue formula

The revenue formula is total revenue = selling price per unit × quantity sold. If you know two of these values, you can rearrange the formula to find the third. Rearranging uses inverse operations: because selling price and quantity are multiplied, you divide to undo that multiplication.

Finding the selling price per unit

To find the price charged for one unit, divide total revenue by the quantity sold:

Selling price per unit = total revenue ÷ quantity sold

For example, a school enterprise sells 70 candles and receives total revenue of £560. Selling price per unit = £560 ÷ 70 = £8.

Finding the quantity sold

To find how many units were sold, divide total revenue by the selling price per unit:

Quantity sold = total revenue ÷ selling price per unit

Using the same candle stall, if total revenue is £560 and each candle sells for £8, quantity sold = £560 ÷ £8 = 70.

When rearranging, divide rather than multiply. Multiplying total revenue by quantity sold or by selling price per unit would not give the missing value.