Total Revenue Business Definition

Total revenue equals the number of items of a good or service sold multiplied by the price of the good or service.

Total revenue business definition. Revenue is the income earned by a business over a period of time eg one month. Where q is the quantity of output sold and p is the inverse demand function. Total revenue is the most common indicator with any business as it allows an insight into a company s overall performance market size etc. It is important to note that revenue is distinct from earnings or profits which takes expenses into account.

Usually based on a firm s sales financial analysts can estimate the size of a firm. Obviously however high total revenue is desirable for any company. It can be calculated as the selling price of the firm s product times the quantity sold i e. Total revenue revenue is a measure of how much money a company has brought in within a given period.

Definition of total revenue. Total revenue price x number of units sold. The total amount of a company s sales and other sources of income. Total revenue is the total amount of revenue coming from all operational departments in a business.

The amount of revenue earned depends on two things the number of items sold and their selling price. It is also referred to as the total sales. Revenue is also known as sales as in the price to sales ratio an alternative to the price to earnings ratio that uses revenue. 2012 farlex inc.

If the hot dogs are sold at 4 00 each the total revenue would equal 40 10 x 40. Revenue is different from net profit. Companies must keep up with annual revenue as it is a number used for tax purposes. Revenue is the income generated from the sale of goods and services in a market average revenue ar price per unit total revenue output the ar curve is the same as the demand curve marginal revenue mr the change in revenue from selling one extra unit of output.

This is the revenue that a company generates during an accounting period quarter or year and reports on its income statement. Revenue is money brought into a company by its business activities. Total revenue price quantity or letting tr be the total revenue function.