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  • Created by: NixoJ001
  • Created on: 08-02-16 14:36


IF you own a large business you are l;ess likely to go bust revenue in the income earned by abusiness over a period of time they work this out by doing price x quantity e.g £5 x 34 = £170.

Costs are the expenses involved in making a product. Firms incur costs by trading.

Some costs, called variable costs, change with the amount produced. For example, the cost of raw materials rises as more output is made.

Other costs, called fixed costs, stay the same even if more is produced. Office rent is an example of a fixed cost which re

Profit and loss

Put simply, profit is the surplus left from revenue after paying all costs. Profit is found by deducting total costs from revenue. In short: profit = total revenue - total costs.

For example, if a firm has a total revenue of £100,000 and a total cost of £80,000, then they are left with £20,000 profitmains the same each month even if output rises.

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