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Money received by the business

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Presentation on theme: "Money received by the business"— Presentation transcript:

1 Money received by the business
Revenue Money received by the business

2 Revenue Streams The money coming into a business from its various activities and operations, e.g. sales revenues, sponsorship deals, merchandise, membership fees and royalties.

3 Sales Revenue/Turnover
Total sales revenue (TR) = Price x quantity sold Average revenue = TR / quantity sold. This is effectively the average price paid by customers. Marginal revenue = the revenue received from selling one more item.

4 Other sources of revenue
Government subsidies. Grants. Donations Fund-raising activities Sponsorship Interest Dividend income Sale of assets Royalties

5 How to increase profits
Increase sales (increases total contribution) Decrease variable costs Decrease fixed costs


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