1.3.2a Revenue, fixed costs, variable costs and total costs Quiz: Pearson Edexcel Business, Unit 3

The 20 questions

1. What is the formula for revenue?

   • Revenue = price + quantity sold
   • Revenue = price ÷ quantity sold
   • Revenue = price × quantity sold
   • Revenue = price − quantity sold

2. What is a fixed cost?

   • A cost that rises directly in line with every extra unit that is produced
   • A cost that does not change with the level of output in the short run
   • A cost that changes every week depending on the level of customer demand
   • A cost that is paid only when the business makes a profit in the year

3. What is a variable cost?

   • A cost that changes directly with the level of output produced
   • A cost that stays the same whatever the level of output in the business
   • A cost that is set by the government and cannot change over time
   • A cost that is paid only once at the start of the business's life

4. Which of these is a variable cost for a bakery?

   • The monthly salary paid to the owner for managing the business
   • Flour used in each batch of bread
   • The annual rent paid on the shop premises each year
   • The insurance premium paid for the shop's building each year

5. Which of these is a fixed cost for a café?

   • Monthly rent for the premises
   • Packaging for takeaway drinks sold during the week
   • Ingredients for the cakes baked fresh each morning
   • Milk used in coffees made during a busy lunchtime

6. What is total cost?

   • Total revenue divided by the number of units sold in the period
   • Total revenue minus total fixed costs for a period of trading
   • Total variable costs minus total fixed costs for a period of trading
   • Total fixed costs plus total variable costs

7. A business has fixed costs of £4,000 and variable costs of £3 per unit. What is its total cost for 1,000 units?

   • £3,000
   • £4,000,000
   • £7,000
   • £4,003

8. A firm sells 1,000 units at £8 each. What is its total revenue?

   • £8,000
   • £1,008
   • £125
   • £16,000

9. Fixed costs are £3,000 and variable costs are £2 per unit. What is total cost when 500 units are made?

   • £3,002
   • £1,500,000
   • £1,000
   • £4,000

10. Fixed costs are £5,000 and variable costs are £4 per unit. What is total cost when 800 units are made?

    • £5,004
    • £8,200
    • £4,000,000
    • £3,200

11. Fixed costs are £2,500 and variable costs are £5 per unit. What is total cost when 300 units are made?

    • £750,000
    • £2,505
    • £1,500
    • £4,000

12. Fixed costs are £6,000 and variable costs are £3 per unit. What is total cost when 1,200 units are made?

    • £6,003
    • £3,600
    • £7,200,000
    • £9,600

13. Fixed costs are £4,500 and variable costs are £6 per unit. What is total cost when 600 units are made?

    • £8,100
    • £2,700,000
    • £4,506
    • £3,600

14. Fixed costs are £1,000 and variable costs are £1 per unit. What is total cost when 200 units are made?

    • £1,200
    • £200,000
    • £1,001
    • £200

15. A product sells for £12 and 400 units are sold. What is the total revenue?

    • £412
    • £4,800
    • £2,400
    • £4,812

16. A product sells for £7 and 900 units are sold. What is the total revenue?

    • £3,150
    • £907
    • £6,300
    • £6,307

17. A product sells for £15 and 250 units are sold. What is the total revenue?

    • £265
    • £1,875
    • £3,750
    • £3,765

18. A product sells for £9 and 1,100 units are sold. What is the total revenue?

    • £9,900
    • £1,109
    • £4,950
    • £9,909

19. A product sells for £4 and 3,000 units are sold. What is the total revenue?

    • £12,000
    • £6,000
    • £3,004
    • £12,004

20. A product sells for £20 and 150 units are sold. What is the total revenue?

    • £170
    • £3,000
    • £3,020
    • £1,500

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