The following is an extract of financial information for a small gardening business. It shows the costs, revenue and profit. Fill in the three blanks. | | August | September | |----------------|---------|-----------| | Total revenue | £6 500 | | | Fixed costs | £1 000 | £1 000 | | Variable costs | | £5 300 | | Total cost | £5 400 | | | Profit | £1 100 | -£1 450 |

GCSE Edexcel Business Revenue, costs and profits: The following is an extract of f

The following is an extract of financial information for a small gardening business - Edexcel - GCSE Business - Question 17 - 2016 - Paper 1

Question 17

The following is an extract of financial information for a small gardening business. It shows the costs, revenue and profit. Fill in the three blanks. | ... show full transcript

Worked Solution & Example Answer:The following is an extract of financial information for a small gardening business - Edexcel - GCSE Business - Question 17 - 2016 - Paper 1

Step 1

Total Revenue for September

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Answer

To find the total revenue for September, we can use the profit and total costs. The formula for profit is:

Profit = Total Revenue - Total Cost

We know the profit for September is -£1,450, and the total cost for September is calculated as fixed costs + variable costs:

Total Cost = Fixed Costs + Variable Costs = £1,000 + £5,300 = £6,300

Now substituting into the profit equation:

-£1,450 = Total Revenue - £6,300

Thus,

Total Revenue = -£1,450 + £6,300 = £4,850

Step 2

Variable Costs for August

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Answer

To find the variable costs for August, we can rearrange the total cost formula. The total cost for August is given as £5,400 and can be calculated as:

Total Cost = Fixed Costs + Variable Costs

Substituting the known value of fixed costs for August:

£5,400 = £1,000 + Variable Costs

Thus,

Variable Costs = £5,400 - £1,000 = £4,400

Step 3

Total Cost for September

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Answer

We already calculated the total costs for September by summing the fixed and variable costs:

Total Cost = Fixed Costs + Variable Costs = £1,000 + £5,300 = £6,300

Thus, the total cost for September is £6,300.

The following is an extract of financial information for a small gardening business - Edexcel - GCSE Business - Question 17 - 2016 - Paper 1

Worked Solution & Example Answer:The following is an extract of financial information for a small gardening business - Edexcel - GCSE Business - Question 17 - 2016 - Paper 1

Total Revenue for September

Variable Costs for August

Total Cost for September

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