Understanding Profit and Costs Quiz

What is the formula for calculating profit?

• Total Revenue - Total Costs

• Total Costs - Total Revenue

• Total Revenue + Total Costs

• Total Costs + Total Revenue

If a company has a total revenue of £500 and total costs of £300, what is the profit?

• £200

• £800

• £300

• £500

Which of the following is a fixed cost?

• Raw materials

• Rent

• Electricity bill

• Wages

What is the formula for calculating total revenue?

• Price per unit × Quantity sold

• Total Costs - Profit

• Fixed Costs + Variable Costs

• Profit + Total Costs

If a product is sold for £10 and 50 units are sold, what is the total revenue?

• £500

• £50

• £10

• £5

Which of the following is a variable cost?

• Insurance

• Salaries

• Raw materials

• Rent

What is the break-even point?

• When total revenue equals total costs

• When profit is maximised

• When fixed costs are zero

• When variable costs are zero

If a business has fixed costs of £200 and variable costs of £5 per unit, what is the total cost for producing 20 units?

• £300

• £100

• £200

• £400

How do you calculate the profit margin?

If a company has a profit of £150 and total revenue of £600, what is the profit margin?

• 25%

• 50%

• 75%

• 100%