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