ECONOMICS

Detailed explanation-1: -Revenue (sometimes referred to as sales revenue) is the amount of gross income produced through sales of products or services. A simple way to solve for revenue is by multiplying the number of sales and the sales price or average service price (Revenue = Sales x Average Price of Service or Sales Price).

Detailed explanation-2: -Revenue is another word for the amount of money a company generates from its sales. Revenue is most simply calculated as the number of units sold multiplied by the selling price. Because revenues do not account for costs or expenses, a company’s profits, or bottom line, will be lower than its revenue.

Detailed explanation-3: -Revenue per unit can be calculated by dividing total revenue by total units sold. The formula is: Average Revenue Per Unit = Total Revenue / Total Units Sold. This can be adjusted based on the business model. For example, subscription services will replace the total units sold with total subscriptions sold.

Detailed explanation-4: -Total Revenue Formula The formula to know your business’ revenue is to multiply the total amount of products or services sold by the price of those products or services. For more in-depth information on your revenue, you can also calculate your average revenue per user.

Detailed explanation-5: -Net sales = Gross sales – Returns – Allowances – Discounts Gross sales is calculated by multiplying the total units sold by the sale per unit price. Returns or sales returns refers to the goods that have been returned by the customers in exchange for a refund for the goods.