Total Revenue Equals Total Sales

It s also important to distinguish between sales and revenue because some.

Total revenue equals total sales. Includes every cost even opportunity costs. A company s total sales during a given period say a month or quarter equal units sold or sales volume multiplied by the unit price. Sales revenue equals total variable cost. I find accounting confusing because different terms are used in different parts of the accounting process.

Total contribution margin equals the sum of variable cost plus fixed cost. Sales revenue is the total money made net sales equals sales revenue less discounts returns or allowances. Revenues are the monies you generate from sales or other activities. Input costs that require an outlay of money by the firm.

If you sell 50 tennis rackets for 70 dollars each your total revenue for those sales is 3 500. Sales actually refer to total sales of the company i e. In this case sales are more than revenue. The revenue generated from the sale of goods and services is known as sales revenue.

Sales discounts 50 net sales 950 sales. For example if you sell 100 tennis rackets at 30 each your total revenue from those racket sales is 3 000. Total revenue in economics refers to the total receipts from sales of a given quantity of goods or services. Sales can be obtained by multiplying the number of units sold by the company during the year with the selling price of the product.

Total revenue was 69 billion for the quarter ending june 2019 and 73 5 billion for the same period in 2018. Does total revenue equal total sales. Then the total revenue generated by the greenery company is 18 000. This is excluding possible revenue from other sources other than sales.

It includes both cash sales and credit sales. After i take an exam i find that some terms meant the same thing. The amount a firm receives for the sales of its putput. Firms costs of production.

For example if the total sales of greenery company are 20 000 the cost incurred due to replacement is 400 and the cost incurred due to other discounts and deductions be 1600. Sales revenue 1000 less. Profit is greater than zero. Total revenue equals total cost.

Variable cost equals fixed cost.