Calculation

Question 1

What is the formula of Revenue?(2 mark)

Answer 1

Revenue(R)=Sales(S) X Average Price(AP)

Question 2

What is the formula of Cost?(2 mark)

Answer 2

Cost=Total cost(TC) + Variable cost(VC)

Question 3

What’s the formula of Profit (2 mark)

Answer 3

Profit(P)=Selling price(SP) - Cost price(CP)

Question 4

What’s the formula of Revenue(2 mark)

Answer 4

Revenue(R)=Price(P) X Quantity sold (QS)

Question 5

What is the formula of contribution(2 mark)

Answer 5

Contributions(C)=Total revenue(TR) - Total variable cost (VC)

Question 6

What is the formula of break-even

Answer 6

Break even = fixed cost(divides by) Selling price - Variable cost

Question 7

What is the formula of Average rate of return

Answer 7

average annual profit( no.of years) divided by cost of investment Multiply by X100