Price, revenue, profits and costs

Price- the amount paid by a consumer to purchase one unit of a product

Total revenue- a measure of income recieved from an organisation

Total revenue = price per unit x quantity of units sold

Profit is the difference between an income of a business and its total costs

Profit= total sales revenue- total costs

Price

• high enough to cover costs of making a product
• Low enough to attract customers
• an ideal selling price is one that helps the firm to make the most profit

Revenue = includes products sold on credit as well as cash

Profit = total sales revenue - total costs

• Profit is the difference between the income of a business and…