Total Revenue Formula

Total Revenue is the total amount of money a business earns from selling its goods or services. The formula to calculate it is simple: Total Revenue = Price per unit x Quantity sold. This means you multiply the selling price of each item by the number of items sold. For example, if a company sells 10 widgets for $5 each, the total revenue would be $50. Understanding total revenue helps businesses assess their financial performance and make informed decisions about pricing and production.