1. What is Total Revenue?

Total Revenue (TR) is the total income a firm receives from selling its goods or services. It's calculated by multiplying the price per unit by the quantity of units sold.

2. How Does the Calculator Work?

The calculator uses the Total Revenue formula:

Where:

• \( Price \) — Price per unit (USD/unit)
• \( Quantity \) — Number of units sold

Explanation: This simple multiplication gives the total money received from sales before any costs are deducted.

3. Importance of Total Revenue Calculation

Details: Total Revenue is fundamental in business and economics for determining profitability, analyzing market performance, and making production decisions.

4. Using the Calculator

Tips: Enter price per unit in USD and quantity of units sold. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is total revenue different from profit?
A: Profit is total revenue minus total costs. Revenue only considers money coming in from sales.

Q2: What if I sell multiple products at different prices?
A: You would calculate TR for each product separately and then sum them all together.

Q3: Does total revenue account for discounts?
A: Yes, if you enter the actual price received after discounts.

Q4: How does this relate to elasticity?
A: How TR changes with price changes depends on price elasticity of demand for the product.

Q5: What's the difference between TR and total sales?
A: In accounting, they're often used interchangeably, but technically sales might exclude certain revenue items.