Learning objective
Calculate revenue, costs and profit.
Read the explanation, check the common trap, then practise with flashcards and questions.
At a glance
0
Flashcards
0
Questions
Topic
Quantitative skills in business
Subtopic
Calculation requirements
Study support
Understand this objective
Quick explanation
Calculate revenue, costs and profit
- This point belongs to Quantitative skills in business, especially Calculation requirements.
- You need to be able to calculate revenue, costs and profit.
- The key ideas to know are profit, revenue, and costs.
- Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.
Key concepts
Why it matters
This objective helps connect Calculation requirements to exam-style questions, flashcards, and revision notes for Quantitative skills in business.
Quick student answer
A small manufacturer produces 500 units of a product. The selling price per unit is £20. Variable cost per unit is £12 and fixed costs are £5,000. Calculate the profit.
Direct answer
-£1,000 (loss)
How it works
Revenue = 500 × £20 = £10,000. Variable cost = 500 × £12 = £6,000. Total cost = £6,000 + £5,000 = £11,000. Profit = £10,000 – £11,000 = -£1,000, indicating a loss.
Key terms
- Profit: The amount remaining after total costs are deducted from revenue.
Common trap
Confusing revenue with profit: Revenue is the total sales income; profit is revenue minus total costs, including both variable and fixed costs.
Related questions
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Flashcard prompts
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Revision tools
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Practice Questions0 linked questions
Revision notestopic notes
Open the full topic revision notes when you are ready to review this objective in context.
Open revision notesRelated learning objectives
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