Different
types of Revenue
Every company starts its business to
earn profit. For this, a company manufactures different types of goods &
services and sells in the market. In the production process, a company spent
lot of expenses and after selling, a company earns revenue. So revenue is an
important part of a business because excess revenue over expenditure is the
profit of a company.
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| Different types of Revenue |
Types of revenue –
Total
Revenue – a company
sells its all goods & services at a price, the amount that a company gets
after selling all its goods & services that are called total revenue. For
example – if a company manufacturing 100 units and sell at a price of 5 per
units so total revenue is R= p*q (100*5=500)
Average
Revenue – if a
company divides its total revenue by the total manufacturing quantity, we get
the average revenue. Like revenue/quantity or (R/Q or 500/5= 100). 100 is our
average revenue.
Marginal
Revenue – every
increase in the revenue by increasing the selling quantity of goods and
services, we call it marginal revenue.
