Revenue, Costs and Profit

View mindmap
  • Revenue, Costs and Profit
    • •Fixed costs – have to be paid even if no products are sold (e.g. rent of ice cream shop)
    • •Variable costs – increase by a step every time an extra product is sold.  
    • Variable cost = variable cost per unit  x  quantity produced Total costs = Variable costs + fixed costs
    • •Revenue = money coming into a business
    • Total revenue = sell price  x  qty sold
    • Gross profit considers revenue and cost of production 
    • Net profit considers gross profit and operating costs
    • Gross profit = revenue - cost of sales
    • Net profit = gross profit - running costs
    • Break even =   Fixed costs    Sell price – cost per unit


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Finance resources »