Revenue Cost And Profit Bbc Bitesize

Learn about and revise revenue costs profit and loss with bbc bitesize gcse business ocr.

Revenue cost and profit bbc bitesize. Revenue is the income earned by a business over a period of time eg one month. In markets where demand is price inelastic a business may be able to raise price well above average cost earning a higher profit margin on each unit sold. The amount of revenue earned depends on two things the number of items sold and their selling price. It sells 10 000 bottles per day at a price of 0 99 each and knows that the variable costs of.

Total costs fixed costs variable costs total costs 13 000 40 000 53 000 total sales revenue it is money that is coming into the business and as such it is a form of income. The bigger this area is. Profit is represented on a break even graph as anything above the break even point bep. Profit per unit or the profit margin ar atc.

Profit revenue total costs for example if a business has revenue of 50 000 and total costs of 41 000 they will have an overall profit of 50 000 41 000 9 000. Bbc radio production cost per user hour in the uk 2015 16 2019 20 by station bbc radio weekly reach in the united kingdom uk q1 2011 q1 2020 bbc radio share of radio listening time in the. Profit maximization occurs when marginal cost marginal revenue. Price per unit variable cost per unit.

Profit is displayed as the shaded area between the revenue and total cost lines. When marginal costs cut average cost at the lowest point. The amount left after subtracting total cost from total revenue. Gross profit total revenue cost of sales for example a business produces bottled water.