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Revenue formula revenue is mainly used in economics and business to measure the success and progress of the trends in the total revenue.
Revenue formula in business. These trends will be useful for the future reference purpose and know the total profit of the business. Revenue is the main element of the income statement in business. Last year we sold 1 000 game consoles for 350 per piece. From the company s revenue expense done by the company is deducted to result in net income.
A sample sales revenue calculation. Revenue is the top line and net income is the bottom line. 2 625 10 625 revenue 6 000 cogs 2 000 operating expenses see how it goes round circle. Revenue formula in excel with excel template revenue formula.
For a product based business the formula is revenue number of units sold x average price. Sales revenue 1 000 x 350 350 000. Learn how to better interpret your financial statements in this online course. Why the sales.
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