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

  1. How is total sales revenue calculated?

    • Fixed plus variable
    • Price minus cost
    • Price times quantity
    • Revenue minus profit
  2. A business sells 2,500 units at £12 each. What is its sales revenue?

    • £30,000
    • £2,082
    • £3,000
    • £14,500
  3. Which of the following is classified as a fixed cost for a manufacturing business?

    • Packaging supplies
    • Piece-rate wages
    • Factory rent
    • Raw materials
  4. Which of the following is classified as a variable cost for a bakery?

    • Flour and sugar
    • Premises rent
    • Manager salaries
    • Business rates
  5. 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
  6. 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
  7. How are total business costs calculated at a specific level of output?

    • Price times quantity
    • Contribution minus rent
    • Fixed plus variable
    • Revenue minus profit
  8. 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
  9. What happens to total fixed costs as output increases within a relevant operating range?

    • Double automatically
    • Rise in proportion
    • Decrease steadily
    • Remain unchanged
  10. A firm increases output from 5,000 to 6,000 units. What happens to fixed cost per unit?

    • Increases
    • Doubles
    • Stays constant
    • Decreases
  11. 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
  12. Which of the following is an example of a semi-variable cost?

    • Factory rent
    • Business rates
    • Phone landline bill
    • Raw materials
  13. 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
  14. 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
  15. 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
  16. Which of the following is an example of an overhead cost?

    • Piece-rate wages
    • Raw materials
    • Factory rent
    • Packaging boxes
  17. 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
  18. What type of cost changes in direct proportion to changes in output volume?

    • Capital cost
    • Fixed cost
    • Overhead cost
    • Variable cost
  19. 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%
  20. 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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