Business Key Words 0.0 / 5 ? Business StudiesBusiness case studiesGCSEOCR Created by: Zuzanna_Created on: 08-02-17 11:50 Fixed costs These are business costs that stay the same regardless how much is sold. 1 of 9 Variable costs These are costs that change with the level of demand. 2 of 9 Total costs Businesses need to work out the total costs of all their purchases in order to understand how they are doing. 3 of 9 Total costs formula Variable costs + Fixed costs = Total costs 4 of 9 Sales revenue It is the money a business recieves from selling their goods and services. 5 of 9 Sales revenue formula Quantity sold x selling price 6 of 9 How can business increase their sales revenue? Charging more(raising selling price) and increasing the way they sell. 7 of 9 Problems with charging prices in their sales revenue? Charging more: people may buy less and charging less may increase sales but not revenue. 8 of 9 Break- even formula Fixed costs / SP(selling price) - VC(variable cost). 9 of 9
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