Total revenue is defined as which of the following expressions?

Total revenue is defined as which of the following expressions?

• A. Price per Unit Times Quantity
• B. Cost Plus Profit
• C. Gross Margin Minus Expenses
• D. Net Income Plus Taxes

Answer: (A)

Total revenue is the total amount of money a business earns from selling goods or services. It is found by multiplying the price per unit by the number of units sold. For example, selling 100 units at $8 each yields total revenue of 800. This figure reflects sales income only and does not account for costs or profits. Cost plus profit describes a pricing method to set price, not the revenue itself. Gross margin minus expenses involves taking revenue, subtracting costs and expenses, which yields profit rather than revenue. Net income plus taxes is even further downstream, representing after-tax profit, not revenue.

Total revenue is the total amount of money a business earns from selling goods or services. It is found by multiplying the price per unit by the number of units sold. For example, selling 100 units at $8 each yields total revenue of 800. This figure reflects sales income only and does not account for costs or profits.

Cost plus profit describes a pricing method to set price, not the revenue itself. Gross margin minus expenses involves taking revenue, subtracting costs and expenses, which yields profit rather than revenue. Net income plus taxes is even further downstream, representing after-tax profit, not revenue.