Revenue, costs and profits (OCR GCSE Business): Flashcards
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Practise the cards
13 cards from this deck
Revenue formula
Revenue formula
Quantity sold × selling price
Fixed costs definition
Fixed costs definition
Costs that don't change with output level
Variable costs definition
Variable costs definition
Costs that change with output level
Example of fixed cost
Example of fixed cost
Rent
Examples of variable costs
Examples of variable costs
Labour costs, raw materials
Total costs formula
Total costs formula
Fixed costs + variable costs
Profit formula
Profit formula
Total revenue - total costs
Gross profit formula
Gross profit formula
Total revenue - total costs
Net profit formula
Net profit formula
Gross profit - expenses
Gross profit margin formula
Gross profit margin formula
(Gross profit / total revenue) × 100
Net profit margin formula
Net profit margin formula
(Net profit / total revenue) × 100
Do businesses aim for high or low profit margin %?
Do businesses aim for high or low profit margin %?
High %
ARR formula
ARR formula
(Average annual profit / cost of investment) × 100