Revenue Formula Accounting

Revenue formula is defined as one of the important formula in accounting. Revenue is defined as the income of a company.  The income of revenue is mainly obtained from the sales.  The multiplication of selling price and the income is called as the revenue formula. The revenue is directly proportional to the quantity and it always from the linear manner. In this article, we are going to study to study about the revenue formula in accounting.


Explanation to Revenue Formula Accounting

The explanation to revenue formula accounting is given as follows,

Formula:

Revenue Formula = P `xx` Q

where,

P = Price per unit
Q = Quantity

Example Problems to Revenue Formula Accounting

Problem 1: Find the revenue by using the formula, where, P = 12500, Q = 200.

Solution:

Step 1: Given: The given values for finding the revenue is as follows,

P = 12500

Q = 200

Step 2: To find:

Revenue

Step 3: Formula: The formula given for finding the revenue is as follows,

Revenue Formula = P `xx` Q

Step 4: Solve:

Revenue Formula = P `xx` Q

= 12500   `xx`   200

= 2500000

Result: Revenue = 2500000

Therefore, this is the answer for solving the revenue formula in accounting.

Problem 2: Find the revenue by using the formula, where, P = 35000, Q = 250.

Solution:

Step 1: Given: The given values for finding the revenue is as follows,

P = 35000

Q = 250

Step 2: To find:

Revenue

Step 3: Formula: The formula given for finding the revenue is as follows,

Revenue Formula = P `xx` Q

Step 4: Solve:

Revenue Formula = P `xx` Q

= 35000   `xx`   250

= 875000

Result: Revenue = 875000

Therefore, this is the answer for solving the revenue formula in accounting.


Practice Problems to Revenue Formula Accounting

Problem 1: Find the revenue by using the formula, where, P = 45000, Q = 650.

Answer: 29250000

Problem 2: Find the revenue by using the formula, where, P = 55000, Q = 65.

Answer: 3575000

Problem 3: Find the revenue by using the formula, where, P = 43000, Q = 35.

Answer: 1505000