How To Calculate Government Revenue

Formula how to calculate total revenue.

How to calculate government revenue. The most simple formula for calculating revenue is. Where a and b are fixed numbers and p is price while q is quantity demanded. Mr from equation 5 13 and 5 15. To calculate the revenue government receives when a tax is imposed on a good multiply the asked jul 5 2016 in economics by cleopold a pre tax equilibrium price by the pre tax quantity.

This is a simplified approach to help you calculate and document your revenue to find out if you were eligible for the wage subsidy extension. B after tax equilibrium price by the after tax quantity. Add each tax payment made during the legally defined tax collection period to arrive at total tax revenue. For instance in 2013 the state of new jersey collected a total of 8 235 billion in sales and use tax revenues which was approximately 30 5 percent of the 27 billion the state government collected from all taxes and fees for the same period.

Ar tr q pq q p a bq. Total revenue price x quantity. Total revenue 20 x 400 8 000. 3 750 1 500 625 4 000 750 10 625 total revenue.

Price is not fixed for this producer known as monopoly producer. The company s net revenue will be equal to 200 0 98 196. Total revenue is 8 000. To have received the wage subsidy extension you must have experienced a 40 decline in revenue over a 30 day consecutive period in the 40 days before the date of application from 10 may 2020.

Quantity is the number of units sold. The 196 is normally the amount found on the top line of the income statement. The last step is to add the totals together to get the total revenue. Alright so we know the total amount of goods sold and the total amount of revenue made off of each item.

Price is the price each unit sells for. Mr d tr dq d aq bq 2 dq.