Revenue Formula with Example and PDF

mathematics formula

Revenue Formula with Example and PDF

 

Revenue Formula with Example and PDF is mainly used  in economics and business, to measure the success and progress of the trends in the total revenue. These trends will be useful for the future reference purpose and it also called the  total profit of the business.

Revenue Formula with Example

In economics, revenue will help you to  know the sales of given quantity of goods and services. The total price gained by a given source is revenue. Mathematically speaking, the product of quantity and price is revenue.

                               Revenue = quantity * Price

Revenue Formula with Example

Definition of Revenue:- Revenue is the value of all sales of goods and services recognized by a company in a month . Revenue  forms the beginning of a company’s income statement and is often considered the “Top Line” of a business. Expenses are deducted from a company’s revenue to arrive at its Profit or net income .

Revenue Formula with Example and PDf
Revenue Formula

 Formula

Revenue Formula with Example and PDf

Formula Of revenue =  Total Revenue = Price x Quantity

Or TR = price x quantity

Where,

p = price of the product

q = quantity that was sold

In a perfectly competitive market, p is said to be constant, which is independent of the q or the quantity of goods sold. Whereas in imperfectly competitive markets, p is inversely related to q.

Types Of Revenue

Total Revenue

TR = p × q

Average Revenue

AR = TR/q = p× q/q = p

Marginal Revenue

MR = Change in total revenue / Change in quantity

Question: What will be the revenue of a newspaper  stand if he is selling 500 copies of a newspaper at Rs. 5 per copy.

Solution:

In below Revenue formula is given-
Revenue=Quantity×Price

Here,
Quantity =1200
Price – Rs. 8

So, Revenue = 1200 x 8 = 9600

 

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Revenue Formula with Example and PDf
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Revenue Formula with Example and PDf
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Revenue is mainly used in economics and business, to measure the success and progress of the trends in the total revenue. These trends will be useful for the future reference purpose and know the total profit of the business.
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