SlideShare a Scribd company logo
Understand how
businesses make profit
TopicA.2
Revenue
All the money coming into a business
Types of Revenue
A company could have more than one stream of revenue
coming in. Make a list of different types of Revenue Alton
Towers could receive.
2:001:591:581:571:561:551:541:531:521:511:501:491:481:471:461:451:441:431:421:411:401:391:381:371:361:351:341:331:321:311:301:291:281:271:261:251:241:231:221:211:201:191:181:171:161:151:141:131:121:111:101:091:081:071:061:051:041:031:021:011:000:590:580:570:560:550:540:530:520:510:500:490:480:470:460:450:440:430:420:410:400:390:380:370:360:350:340:330:320:310:300:290:280:270:260:250:240:230:220:210:200:190:180:170:160:150:140:130:120:110:100:090:080:070:060:050:040:030:020:01End2:00
Types of Revenue
Types of Revenue
Types of Revenue
Expenditure
 All the money going out of the business
Types of expenditure
A Company has more than one expenditure, can you list the
different types of expenditure AltonTowers would have ?
Types of expenditure
AltonTowers expenditure
AltonTowers pays £1500 each year for insurance it also spends
£2500 each year on Advertising. AltonTowers have a Sales
Revenue each year of £10,000
 Calculate AltonTowers annual Expenditure.
 What would their profit be ?
AltonTowers expenditure
Profit
Calculate Revenue
A leisure centre charges £4.10 per person for swimming and £8.80 to hire a
badminton court.
The centre has 3000 swimmers each month and has hired out 600 badminton
courts.
 What is the total revenue that the leisure centre has made?
 What type of revenue is this?
 What are the other 3 types of revenue could the business have as well as
that above?
 List 3 different costs that you would expect to find in a leisure centre?
Expenditure
The variable cost per swimmer is £0.40 and per badminton court
is £1.20. As well as this the centre has to pay insurance of £2000
and utility bills of £500 per month.
 Using the visitor numbers from the revenue part of the
question above, calculate the total expenditure of the centre.
Profit or loss
 What is meant by the term profit? (Try to use the terms
revenue and costs in your answer)
 What is meant by the term loss? (Try to use the terms
revenue and costs in your answer)
 What is the formula to calculate profit?
 For the leisure centre now try and calculate the profit or
loss that has been made.
Discuss
Some people suggest that to make money a business
will need to spend money. To what extent do you agree
with this statement?Try and give a reason to justify your
answer.

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A.2

  • 2. Revenue All the money coming into a business
  • 3. Types of Revenue A company could have more than one stream of revenue coming in. Make a list of different types of Revenue Alton Towers could receive. 2:001:591:581:571:561:551:541:531:521:511:501:491:481:471:461:451:441:431:421:411:401:391:381:371:361:351:341:331:321:311:301:291:281:271:261:251:241:231:221:211:201:191:181:171:161:151:141:131:121:111:101:091:081:071:061:051:041:031:021:011:000:590:580:570:560:550:540:530:520:510:500:490:480:470:460:450:440:430:420:410:400:390:380:370:360:350:340:330:320:310:300:290:280:270:260:250:240:230:220:210:200:190:180:170:160:150:140:130:120:110:100:090:080:070:060:050:040:030:020:01End2:00
  • 7. Expenditure  All the money going out of the business
  • 8. Types of expenditure A Company has more than one expenditure, can you list the different types of expenditure AltonTowers would have ?
  • 10. AltonTowers expenditure AltonTowers pays £1500 each year for insurance it also spends £2500 each year on Advertising. AltonTowers have a Sales Revenue each year of £10,000  Calculate AltonTowers annual Expenditure.  What would their profit be ?
  • 13. Calculate Revenue A leisure centre charges £4.10 per person for swimming and £8.80 to hire a badminton court. The centre has 3000 swimmers each month and has hired out 600 badminton courts.  What is the total revenue that the leisure centre has made?  What type of revenue is this?  What are the other 3 types of revenue could the business have as well as that above?  List 3 different costs that you would expect to find in a leisure centre?
  • 14. Expenditure The variable cost per swimmer is £0.40 and per badminton court is £1.20. As well as this the centre has to pay insurance of £2000 and utility bills of £500 per month.  Using the visitor numbers from the revenue part of the question above, calculate the total expenditure of the centre.
  • 15. Profit or loss  What is meant by the term profit? (Try to use the terms revenue and costs in your answer)  What is meant by the term loss? (Try to use the terms revenue and costs in your answer)  What is the formula to calculate profit?  For the leisure centre now try and calculate the profit or loss that has been made.
  • 16. Discuss Some people suggest that to make money a business will need to spend money. To what extent do you agree with this statement?Try and give a reason to justify your answer.