Price, revenue, profits and costs

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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

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