BTEC Business

1. Understand how
businesses make profit
TopicA.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.
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4. Types of Revenue

5. Types of Revenue

6. Types of Revenue

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 ?

9. Types of expenditure

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 ?

11. AltonTowers expenditure

12. Profit

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.