Total revenue equals:
A)total output multiplied by the unit cost of output
B)total output multiplied by profit
C)total output multiplied by the unit price of output
D)total output divided by profit

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying the total output by the unit price of output. This is because revenue is the total amount of money a company receives from selling its goods or services, so it depends on both the quantity of items sold (total output) and the price at which they are sold (unit price of output). Option A is incorrect because it multiplies total output by cost, which would give the company its total expenses rather than its revenue. Option B is incorrect because it multiplies total output by profit, which would not give an accurate measure of the company's revenue. Option D is also incorrect because it divides total output by profit, which does not make logical sense for calculating revenue.

Total Revenue Equals