Total Revenue

Total revenue refers to the total amount of money a business earns from selling its goods or services before any expenses are subtracted. It is calculated by multiplying the price of each item sold by the number of items sold. For example, if a company sells 100 widgets at $10 each, its total revenue would be $1,000. Understanding total revenue helps businesses assess their sales performance and make informed financial decisions, such as setting prices or planning inventory, ultimately impacting profitability.