revenue,costs and profit

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  • business: costs, Revenue and profit section
    • costs
      • costs is the expenses  paid out to run a then business
        • Total costs= variable costs + fixed costs
      • Fixed costs don't vary and and they are over a short period of time eg: salaries or rent.
      • Variable costs are costs that will increase as the firm expands output
    • revenue
      • revenue is the income returned by a business
      • revenue= sales x price
      • businesses earn most of their income from selling their products to customers.
    • profit
      • Businesses make a profit if the earn more than they spend
      • (2 ways of working out profit)
      • Example 1) Profit=(20,000 x £2)  Example 2) Profit= 40,000-30,000=10000
      • profit= revenue - costs
    • link:
      • BBC bitesize


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