Total Revenue Equation

Introduction

The total revenue is the money coming in from sales of goods and services.
To calculate the total revenue, multiply the number of units sold or produced by the selling price per unit.

Examples

Example 1: An item has a selling price of $10.5.
Questions: What is the total revenue when 500 items are sold?
Solution: TR = 500 × 10.5 = $5,250.00

Example 2: A company sold Q units of laptops at $999 each.
Question: Write the total revenue equation.
Solution: TR = 999 × Q

Example 3

(1) An item has a selling price of $12.75.
Question: What is the total revenue when 305 items are sold?
Solution:
SP = 12.75; Q = 305
TR = SP × Q = 12.75 × 305 = $3,888.75; The total revenue is $3,888.75.


(2) ABC Holidays sold 125 holiday packages to Dubai in January. Each package sells for $5,400. Question: What is the total revenue?
Solution:
SP = 5400; Q = 125; TR = SP × Q = 5,400 × 125 = $675,000;
The total revenue is $675,000.


(3) An electronics company sold x units of a certain television model last year. The selling price for each television was Dh 1545.
Question: Write the total revenue equation.
Solution:
TR = SP × Q = 1545 × Q = 1545Q; The total revenue equation is TR = 1545Q; (4) A company sold Q units of Dell Servers at $3785 each.
Question: Write the total revenue equation.
Solution:
TR = SP × Q = 3875 × Q = 3785Q;
The total revenue equation is TR = 3785Q

Exercises with Solutions: Analyze Data Graphically

Please access the following link to do additional exercises on how to analyze total revenue graphically.
Exercises with solution on analyzing total revenue graphically

Exercises with Solutions using Excel: Analyze total revenue graphically Graphically

Please access the following link to analyze data graphically using Excel.
Exercises with solution on analyzing total revenue algebraically


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Date of last modification: March 19, 2019