IB Business Management

3.2 Costs and revenues

Worksheet
www.thinkib.net/businessmanagement

a) Complete the table below by filling in the gaps. (4 marks)

The table below shows some changes in costs and revenue as output changes:

Output Costs & Revenues ($)

level
Sales Fixed Variable Total Profit
revenue costs costs costs

0 0
1
2 500
3 900
4
5 1,500
6 1,200

b) Identify the total fixed costs. (1 mark)

c) Calculate the selling price of the product. (2 marks)

d) Calculate the average variable cost. (2 marks)