Q:

How do you calculate sales revenue?

A:

Quick Answer

To calculate sales revenue, verify the prices of the units and the number of units sold. Multiply the selling price by the number of units sold, and add the revenue for each unit together.

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How do you calculate sales revenue?
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Full Answer

  1. Verify the selling price

    Verify the selling price of each unit. A unit can be anything the company sells. If the company sells multiple products, the sale price of each unit must be taken into account. If the company is selling apples and bananas, those are the units. For example, the selling price of one apple is 75 cents, and one banana is 50 cents.

  2. Identify the number of sold units

    Identify how many of each kind of unit sold. It is important to track the number of units sold to calculate sales revenues. For example, the company sold 2500 apples and 1750 bananas.

  3. Multiply the price by the number sold

    Multiply the selling price of each unit by the total number of units sold. This calculation should be done separately for each type of unit the company sells. In the example, 2500 apples multiplied by 75 cents equals $1875, while 1750 bananas multiplied by 50 cents equals $875.

  4. Add the revenue of each product

    Add the revenue generated by each unit together. The result is the total sales revenue. In the example, the sales revenue of the apples and bananas is $1875 added to $875, which equals $2750 in total sales revenue.

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