costs

profit

• profit is whats left from revenue when all costs have been deducted

revenue

• Revenue is the income earned by a business over a period of time, eg one month. The amount of revenue earned depends on two things - the number of items sold and their selling price. In short, revenue = price x quantity.

variable costs

• is costs that do change to how many you sell e.g packaging costs vary to how many you make

fixed costs

• they are costs which DO NOT vary with the output produced e.g. market stall

total costs

calculations

how to calculate

• profit = total revenue -total costs
• total cost = total variable costs + fixed costs
• revenue = price x quantity

break even

what is it?

• break even is a finance term, where all costs are covered but no profit made, neither a profit or a loss.