REVENUE
DEFINITION:
Revenue is the amount of money that a company actually receives
during a specific period, including discounts and deductions for
returned merchandise. It is the top line or gross income figure from
which costs are subtracted to determine net income.
Revenue is calculated by multiplying the price at which goods or
services are sold by the number of units or amount sold. Revenue is
also known as sales on the income statement.
EXAMPLE:
If a firm gets Rs. 16,000 from sale of 100 chairs, then the amount of
Rs. 16,000 is known as revenue.
REVENUE SCHEDULE:
A revenue schedule shows the amount of revenue generated by a firm
at different prices.
, P(£) TR MR
Qd
(000) (000) (000)
10 1 10
9 2 18 8
8 3 24 6
7 4 28 4
6 5 30 2
5 6 30 0
4 7 28 -2
3 8 24 -4
2 9 18 -6
1 10 10 -8
TYPES OF REVENUE:
The concept of revenue consists of three important terms;
• Total revenue
• Average revenue
• Marginal revenue
DEFINITION:
Revenue is the amount of money that a company actually receives
during a specific period, including discounts and deductions for
returned merchandise. It is the top line or gross income figure from
which costs are subtracted to determine net income.
Revenue is calculated by multiplying the price at which goods or
services are sold by the number of units or amount sold. Revenue is
also known as sales on the income statement.
EXAMPLE:
If a firm gets Rs. 16,000 from sale of 100 chairs, then the amount of
Rs. 16,000 is known as revenue.
REVENUE SCHEDULE:
A revenue schedule shows the amount of revenue generated by a firm
at different prices.
, P(£) TR MR
Qd
(000) (000) (000)
10 1 10
9 2 18 8
8 3 24 6
7 4 28 4
6 5 30 2
5 6 30 0
4 7 28 -2
3 8 24 -4
2 9 18 -6
1 10 10 -8
TYPES OF REVENUE:
The concept of revenue consists of three important terms;
• Total revenue
• Average revenue
• Marginal revenue
