Lesson 2.2.2
2.2.2 Sales volume, revenue and costs Quiz: Pearson Edexcel Business, Unit 2
20 questions
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Lesson 2.2.2, Sales volume, revenue and costs: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 2: Managing business activities, written with Revision Ninja.
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The 20 questions
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How is total sales revenue calculated?
- Fixed plus variable
- Price minus cost
- Price times quantity
- Revenue minus profit
-
A business sells 2,500 units at £12 each. What is its sales revenue?
- £30,000
- £2,082
- £3,000
- £14,500
-
Which of the following is classified as a fixed cost for a manufacturing business?
- Packaging supplies
- Piece-rate wages
- Factory rent
- Raw materials
-
Which of the following is classified as a variable cost for a bakery?
- Flour and sugar
- Premises rent
- Manager salaries
- Business rates
-
A business has fixed costs of £20,000 and variable costs of £4 per unit. What are its total costs for 3,000 units?
- £12,000
- £20,000
- £23,000
- £32,000
-
A firm has sales revenue of £90,000 and total costs of £70,000. What is its profit?
- £90,000
- £70,000
- £160,000
- £20,000
-
How are total business costs calculated at a specific level of output?
- Price times quantity
- Contribution minus rent
- Fixed plus variable
- Revenue minus profit
-
A business sells 1,000 units at £25 each. Its variable cost is £10 per unit and fixed costs are £8,000. What is its profit?
- £25,000
- £15,000
- £17,000
- £7,000
-
What happens to total fixed costs as output increases within a relevant operating range?
- Double automatically
- Rise in proportion
- Decrease steadily
- Remain unchanged
-
A firm increases output from 5,000 to 6,000 units. What happens to fixed cost per unit?
- Increases
- Doubles
- Stays constant
- Decreases
-
A business has revenue of £48,000 and profit of £9,000. What are its total costs?
- £57,000
- £48,000
- £39,000
- £9,000
-
Which of the following is an example of a semi-variable cost?
- Factory rent
- Business rates
- Phone landline bill
- Raw materials
-
What does a business's sales revenue figure measure before any costs are deducted?
- Total variable cost
- Gross profit margin
- Total net profit
- Total sales income
-
A business sells 800 units at £40 each and its total costs are £25,000. What is its profit?
- £25,000
- £15,000
- £7,000
- £32,000
-
A firm's variable cost per unit rises from £6 to £7 while its output is 2,000 units. By how much does total variable cost rise?
- £2,000
- £1,000
- £12,000
- £14,000
-
Which of the following is an example of an overhead cost?
- Piece-rate wages
- Raw materials
- Factory rent
- Packaging boxes
-
A firm sells 600 units at £50 each. Its fixed costs are £10,000 and variable costs are £20 per unit. What is its contribution per unit?
- £30 per unit
- £50 per unit
- £10 per unit
- £20 per unit
-
What type of cost changes in direct proportion to changes in output volume?
- Capital cost
- Fixed cost
- Overhead cost
- Variable cost
-
If sales volume falls by 10% and selling price is unchanged, what happens to revenue?
- Falls by 20%
- Falls by 10%
- Stays unchanged
- Rises by 10%
-
A business's fixed costs are £12,000. It sells 3,000 units at £9 each, with variable cost of £5 per unit. What is its profit?
- £0
- £3,000
- £12,000
- £15,000
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