1. What is the Total Revenue Formula?

Total Revenue (TR) is the total amount of money a company receives from selling goods or services. It's calculated by multiplying the price per unit (P) by the quantity of units sold (Q).

2. How Does the Calculator Work?

The calculator uses the Total Revenue equation:

Where:

• \( P \) — Price per unit (USD/unit)
• \( Q \) — Quantity of units sold (units)
• \( TR \) — Total Revenue (USD)

Explanation: The equation shows the direct relationship between price, quantity sold, and total revenue in a simple multiplication.

3. Importance of Total Revenue Calculation

Details: Total Revenue is a fundamental metric in business that helps assess sales performance, set pricing strategies, and evaluate business growth.

4. Using the Calculator

Tips: Enter the price per unit in USD and the quantity of units sold. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between total revenue and profit?
A: Total revenue is the total income from sales, while profit is revenue minus all expenses and costs.

Q2: How can I increase total revenue?
A: You can increase price, increase quantity sold, or both. However, these factors often affect each other.

Q3: What is marginal revenue?
A: Marginal revenue is the additional revenue from selling one more unit of a product.

Q4: Does total revenue consider discounts?
A: The basic formula doesn't. For discounted sales, use the actual price after discount in the calculation.

Q5: Can this be used for service businesses?
A: Yes, where P would be the price per service and Q would be the number of services provided.