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Published byArron Parks Modified over 9 years ago
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COST, Revenue, profit CHP. 18
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2 mins starter… List as many costs in bread factory as you can…. Which are Fixed and Variable costs?
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BREAD FACTORY FIXED COSTS Rent VARIABLE COSTS Wages
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Costs Fixed Costs (FC) – Do not change with output. Variable costs (VC) change with output. Total costs (TC) = FC + VC Average Cost (AC) = TC/Quantity
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.p.78
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Revenue 2 girls sell 18 glasses of lemonade for $10. How much money do they make? 18 x $10 = $180 Total Revenue (TR) is total sales TR = Price x Quantity
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Profit This is what the entrepreneur gets after all costs have been paid. Profit is the driving force behind every business and firm in operation. Profit = TR – TC.
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Can you figure out equations for Revenue ____ x____ Profit = ___ - _____ Total cost = ___ + VC Fc = VC = AVERAGE COST = ____
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Try questions Chp. 18 Q.1, Q.2 & Glenn’s fishing Make sure you remember the difference between Variable and Fixed Cost.
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Diagrams (Extension… ) TR TC FC VC
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