Webtotal revenue test equation. Review vocabulary with flashcards or skim through our library of thousands of common homework questions and answers. Right heres how youll determine overall revenue for forecasting objectives. copyright 2003-2022 Study.com. The total revenue test assumes all other factors that may influence revenue will remain constant during the testing period. In order to arrive at total revenue, it is imperative to combine the multiple sources into one. 1000, what would be the price of each item sold? WebTotal Revenue Equation Discover free flashcards, games, and test prep activities designed to help you learn about Total Revenue Equation and other concepts. And q = quantity sold per period. Suppose the professional looks at that number and believes it is too reduced. The gross profit formula is: Gross Profit = Revenue Cost of Goods Sold. If he sells the same amount each month, his total revenue would drop to $4,000 ($80 x 50 = $4,000). It is very important for any company to keep a record of its revenue. The formula is E d = Change in quantity Sum of quantities /2 change in priceSum of prices /2 Where p1= 5, P2= 8, Q1= 150, Q2= 100 E d = Q2-Q1Q1+Q2 /2 P2-P1 (P1+P2 )/2 E d= 100-150100+150/2 8-5 (8+5)/2 = -50125 36.5 = -0.40.462 = -0.866 The demand for table salt is inelastic since its elasticity is below 1. Revenue or total revenue is the total income obtained by selling the products and is calculated as the product of price per item and the number of items sold. Right heres how youll determine overall revenue for forecasting objectives. Therefore the sale of goods or services by any company earns cash to them. Revolut Ltd is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011, Firm Reference 900562. In fact, an increase in price would b Each statistics has its very own worth to the company owner, revenue often being principal among them. What is the total cost and revenue method? Identify separate performance obligations, 4. Net revenue is the revenue earned after the deduction of all the expenses of the company incurred during the sales of the goods or services. Your formula should look something like this: Total \; Revenue = Quantity \; Sold \times Price. Or, simply use this Revenue Calculator. 2. Total revenue = Number of customers Average price of service rendered Why is this test important to businesses? If you search for the last overall profits numbers, you will find them atop the earnings statement. Nevertheless, total income or the total amount generated before any expenditures are thought about likewise serves an essential function. if less than one. It can be calculated as the product of price and the quantity of output. There are several downstream aspects to take into consideration when rates product and services. This raw total is called gross revenue. Yes, there is a difference between revenue and net revenue. In that case, she recognizes off the bat that she needs to consider increasing her rates or searching for added earnings streams that are not dependent on billable time. Total revenue refers to the total money that a business earns by selling goods and services. We need to use these cookies to make our Even so, these terms are understood to mean the same thing, at least for the purpose of this post. 2 How do you calculate total revenue in economics? How Do You Write A Thesis/Affordable Term Paper? Therefore, the revenue earned by the newspaper shop per day is Rs. Find the total revenue by using this equation: = 2. What is the formula of total revenue?The formula to know your business' revenue is to multiply the total amount of products or services sold by the price of those products or services.Why is total revenue calculated?Total revenue is the total amount of money a company brings in from selling its goods and services. Total revenue is maximized at the price where demand has unit elasticity. Association of Chartered Certified Accountants) here. The formula to do this is below, and we cover net revenue fully here. Revenue is sometimes referred to as sales revenue. We may share this information with other organisations, such as Google, The total revenue formula is given as: Revenue = Price x Quantity This formula can be rewritten as: Price = Revenue / Quantity Price = 1000 / 25 Price = 40 So, the price of each item is Rs. Total \; Revenue = 60.000 \times \$ 4 = \$ 240.000. It determines If your sales are slow and you think you should drop the price of your product to $40 each, then your total revenue would be $80,000. How to calculate total revenue for a month? Monthly sales = x * (7000 x) Monthly sales = 7000x x 2. Economics Elasticity and the Total Revenue Test Term 1 / 37 Elasticity of Demand Click the card to flip Definition 1 / 37 This measures how sensitive the quantity demanded is to a change in price; it refers to the flexibility of consumers' desires for a product. WebTotal revenue test formula To calculate total revenue (TR), multiply the price per unit (P) and quantity of the product sold (Q). When a firm considers a price increase or decrease, there are three possibilities, which are laid out in Table 1, below. price times quality. If you are a service-based company, then the total revenue formula is: Total revenue = (average price per service sold) x (number of services sold) While To do so, you may check out your revenue declaration to get a baseline understanding of how much you have historically marketed. The total cost formula is used to combine the variable and fixed costs of providing goods to determine a total. Revenue is the most common word used to measure the success or progress of any kind of business or economic firms. You can also find many online examples of calculating total revenue in The Current Cell Enter The Formula That Will Calculate The Total Revenue. Study with Quizlet and memorize flashcards containing terms like elastic, inelastic, total revenue test equation and more. For instance, this will affect the period that the new revenue falls into and the resulting corporation tax bill. Will you be the next? It must also have an enforceable right to payment for performance completed. Revenue and profit are two different words in economics. Once the business deducts the total cost of promotional discounts or refunds, this reveals a more insightful figure called net revenue or net sales. The percent of revenue method, commonly called the percentage of completion method, is a way for construction and engineering companies to account for project revenues. Consider lower Alternate Price and determine Alternate Number Products Sold at this price. recorded) in the business accounts, as this date can have significant implications. Join 25M+ already using Revolut. What will be the total revenue of the shop per day? relatively elastic, price and total revenue are inversely related. For expenses and costs, a company uses standard accrual accounting. One aim of IRFS15 was to tighten-up the criteria for when the latter happens. total revenue = (average price per services sold) x (number of services sold) The resulting value in these calculations is your total revenue. Make sure that you're accounting for any monetary change in your company's financesno matter how big or small. He may also offer discounts on a few items in his shop. Total Revenue in Economics | Definition & Formula Average revenue formula = (Total revenue) / (No. Alternatively, if demand is relatively inelastic, the firm will believe that increases in price will only yield small changes in the quantity demanded. The big challenge with calculating revenue is to determine when a transaction should be formally recognised (i.e. She can begin to think about possible costs, like the software shell require or her tax obligations. The business should describe those extra types of income as other revenue or even extraordinary revenue. A larger business must typically understand the revenue recognition principle, which we explore here. Monthly revenue March 2018 = $11,890,000 or $11.89 million. Whereas in imperfectly competitive markets, p is inversely related to q, that is the reason behind TR being considered as a function of q. Example. What happens to total revenue when price increases? Which of the following is the type of revenue? How do I make a drop-down list in HTML and CSS? The total cost and revenue method is an accounting practice that uses a perfect competition model to calculate the total costs to the company at every level. Once the business deducts the total cost of promotional discounts or refunds, this reveals a more insightful figure called net revenue or net sales. 10 What is the percent of revenue method of accounting? Total Revenue Test Video Lessons (1 video lessons) Watch simple explanations of Total Revenue Test and related concepts. This is when the net revenue formula comes into picture. How do you calculate total revenue in economics? Total Revenue (TR) = Quantity Sold (Q) x Price (P) The total revenue is found below using the total revenue formula and by plugging in the granite yard data When you subtract Operating Costs from Gross Profit, you get Take-home pay. 1 What is the total revenue test explain how it works? where necessary. In a perfectly competitive market, p is said to be constant, which is independent of the q or the quantity of goods sold. The vendor business must now demonstrate, among other things, that it is creating an asset for which it has no alternative use. A total revenue test approximates the price elasticity of demand by measuring the change in total revenue from a change in the price of a product or service. Figure 2 The Latest Innovations That Are Driving The Vehicle Industry Forward. When you deduct COGS from Earnings, you get Gross Profit. This can be a month, quarter, and even a year though we recommend looking at your monetary declarations monthly. Overview of Total Revenue. This total amount of cash obtained by selling the goods or services is called the revenue of the company. WebThe total revenue formula can be mathematically expressed as Total Revenue = Price x Quantity Or TR = p x q Where, p = price of the product q = quantity that was sold In a Compared to other reports, the earnings declaration is pretty straightforward to read. Still, youll be depending extra heavily on a formula rather. Let us take a real life example of a shopkeeper for the better understanding of revenue concept. The nature of total revenue depends on the market where products are sold and produced. Are Revenue and Net Revenue Different from Each Other? From our friends at Zipcar, Profit is defined as the amount by which the revenue This choice relies upon the business proprietor having a solid understanding of the marketplace price for boots like the ones he makes, in addition to the size of his target audience. website work, for example, so you can get promotions awarded to your account. If a business is registered to perform cash-based accounting, this date is whenever it receives the payment for the sale. The term revenue in economics is closely associated with two important terms namely: The revenue earned per unit product sold is generally calculated using the average revenue formula. number of visitors to our website, and see how visitors browse our website, so we can improve it Operating Expenses: This area includes every little thing you invested in running your organization over the accountancy period. Or, will he require to employ one more bootmaker to help fulfil a need? If total revenue changes in the same direction as price, demand is inelastic. Understanding Details of Total Revenue Formula. Allocate the transaction price to performance obligations, 5. Net Revenue = Gross Revenue Discounts Refunds. You can see that the total revenue formula can be either beguilingly simple or fiendishly complex, depending on how many pieces of the monkey puzzle you unpick. Study.com can help you get the hang of Total revenue test with quick and painless video and text lessons. The total revenue formula is tricky to describe as it has more moving parts than seem apparent at first glance. The average revenue formula is given as the ratio of total revenue to the number of units sold. Heres a quick review of the significant sections: Total amount Income: The first area of the income declarations shows all the cash your business brought throughout the audit period. Possibly youre deciding whether to use a discount rate on your service or products or whether to raise your rates. The expense of Product Sold: Additionally, referred to as COGS, this section breaks down how much it cost to create things you offered during this bookkeeping period. WebStudy with Quizlet and memorize flashcards containing terms like elastic, inelastic, total revenue test equation and more. (q2 - q1 /q2+q1) / (y2-y1 / y2+ y1) --->> do NOT take absolute value, what does the income elasticity equation tell you. 20 Fun Facts About Sales Revenue Formula Revenue and profit are two different words in economics. Your formula should look like this: For starters, the word revenue is often used to describe the sales turnover of a business or its total sales. If he believes that the discount will bring in much more orders than that, it could be a sensible move for him. 08804411). To know more about such interesting concepts on Economics for Class 12, stay tuned to BYJUS. Mathematically revenue is given as the product of total number of sales and the average price per sale of goods or services. period. Net revenue is usually lesser than the total revenue in numbers. For instance, the business must smooth-out a quarterly rent payment across the three months this sum covers. Total Revenue and Elasticity of Demand Total revenue is the price of an item multiplied by the number of units sold: TR = P x Qd. You can even take a practice quiz or exam to measure your progress. A total revenue test determines if the demand for a product or service is elastic or inelastic. Calculate the marginal cost by using this equation: =. Mathematically, revenue is calculated as a product of price and quantity of the items sold. To calculate your total revenue, you'll multiply the number of baked goods sold (40,000) by the average price per good ($5). If you continue to use this site we will assume that you are happy with it. Marginal revenue formula gives the additional revenue earned by selling an additional unit of the output product. Carsharing may be the perfect solution for your business. What is the percent of revenue method of accounting? All rights reserved. determining elastic and inelastic with equation. always take the absolute value for this one!! In either situation, the total profits formula will aid you to make those choices. (3.1) ADVERTISEMENTS: Where p = price of the product. The rules on revenue recognition in the UK were changed in 2018 by the Financial Reporting Council in its IFRS15 guidelines. Profit is sometimes regarded as net revenue. Profit is arrived at by deducting all forms of expenses from the total revenue. We use cookies to ensure that we give you the best experience on our website. must know that overall income likewise goes by gross income. Those two terms are made use of reciprocally. A good example of this is when a business refits a restaurant in a premises that is owned or at least controlled by the client. They're What is total cost formula? All other trademarks and copyrights are the property of their respective owners. Revenue = Number of units sold X Price per unit of good or service This raw total is called gross revenue. When a firm considers a price increase or decrease, there are three possibilities, which are laid out in Table 1, below. The most basic representation of total revenue formula is: A newspaper selling shop sells 600 copies of newspaper per day. Revenue is the total income obtained through a business. WebRevenue = 5000 * 2 Revenue = $10,000 Total revenue generated by the company is $10,000. These allow us to recognise and count the What Is a Training Module and What Does It Look Like? nuances between the terms turnover and revenue, which we outline here. So, in other words, marginal revenue can be regarded as the change in total revenue due to the sale of one more unit of the product. They should not be misused one in place of the other. Still, youll be depending extra heavily on a formula rather. In other words, its the total amount of income it is a normal good when dealing with income elasticity if.. it is an inferior good when dealing with income elasticity if (q2x - q1x / q2x + q1x ) / (p2y -p1y / p2y + p2y), what does the cross elasticity equation tell you, if it will be a substitute good or complementary goodd, inelastic demand - consumer pays more of the tax, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. 9 How to calculate total revenue for a month? WebTotal revenue, also known as gross revenue, is your total revenue from recurring ( MRR) and non-recurring revenue streams. A total revenue test approximates the price elasticity of demand by measuring the change in total revenue from a change in the price of a product or service. Head to our Website Ad Revenue Calculator, to see a real-life practical example of revenue. What Are The Agents Of Socialization? Everyone has had to rethink the way they work recently including the way we commute. It is very important for all of us to understand the concept of revenue and its calculation so that we can analyse the growth of our business. Required fields are marked *. The formula to do this is below, and we cover net revenue fully here. To do so, you may check out your revenue declaration to get a baseline understanding of how much you have historically marketed. For any company, it is good to keep track of their revenue in order to evaluate their total profit. Examples would be VAT on sales, or when a travel agency takes payment for a boutique hotel. Here are some reasons why the total revenue Therefore, an increase in price will be less likely to spur a large decrease in demand if demand is very inelastic. Revenue should not be confused with the total amount he may earn by selling all the products in his shop. This will help the company in effective financial management. The Percent of Revenue Method in Accounting. What is the total revenue test explain how it works? Total Revenue in Economics | Definition & Formula, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, Working Scholars Bringing Tuition-Free College to the Community. Do you want to anticipate total profits in the future? If price changes by a larger percentage than quantity demanded (i.e., if demand is price inelastic), total revenue will move in the direction of the price change. This formula becomes especially useful if the craftsman is considering lowering his prices to $80 per pair in order to boost sales. Revenue is the total amount of gross income earned by selling the products or services. 5 Which of the following is the type of revenue? The revenue statement introduces all profits streams over a certain period before subtracting the price of products marketed and operating costs. In this instance, total earnings give her a jumping-off point to additionally discover her prices alternatives. The mobile sales stood at 2,900 units during March 2018, then the total monthly sales in March 2018 can be calculated as, Monthly revenue March 2018 = 7,000 * 2,900 (2,900)2. Find the alt revenue by using this equation: = () 4. Demand is unit price elastic, and total revenue remains unchanged. Nonetheless, the total profits formula gives business owners an area to begin when considering their pricing. Revenue = Number of units sold X Price per unit of good or service. Total revenue is maximized at the price where demand has unit elasticity. Quantity demanded falls by the same percentage by which price increases. Total revenue is an important concept in Economics that refers to the total amount of money that a company earns through the selling of its goods and services, over a time period (a day, week, month or year). If you sold 2,000 units of your product at $50 each, your total revenue would be $100,000 for that accounting period. The shop charges Rs. Is It Secure to Get Essays Completed by Highly Qualified Essay Writers? The total number of receipts from the sales of any goods or services at any quantity is referred to as revenue. The method deals with when to recognize income from a project. The formula is: Total cost = (Average fixed cost x average variable cost) x Number of units produced. Total revenue is price times the quantity of tickets sold (TR = P x Qd). Diagonal of Square Formula - Meaning, Derivation and Solved Examples, ANOVA Formula - Definition, Full Form, Statistics and Examples, Mean Formula - Deviation Methods, Solved Examples and FAQs, Percentage Yield Formula - APY, Atom Economy and Solved Example, Series Formula - Definition, Solved Examples and FAQs, Surface Area of a Square Pyramid Formula - Definition and Questions, Point of Intersection Formula - Two Lines Formula and Solved Problems, CBSE Previous Year Question Paper for Class 10, CBSE Previous Year Question Paper for Class 12. In economics, the revenue is used as a factor of determining the quality and progress of sales of any goods or services. Total Revenue = Quantity Sold x Price of the Product If you sold 2,000 units of your product at $50 each, your total revenue would be $100,000 for that accounting If total revenue does not change when price changes, demand is unit-elastic. 2400/-. The good news is that IFRS15 provides a new five-step process to cover most types of transaction. Revenue can be of multiple kinds which include gross and net revenue as well as other sources of revenue. The formula for calculating total revenue can be written as: TR = p x q = TR (q) . Within audit, there are plenty of means to slice and dice revenue and also profit numbers. With a complex sales transaction (e.g. The premise is that recognition occurs when ownership of goods transfers to a customer for a mutually agreed sum. Imagine that the band starts off thinking about a certain price, which will result in the sale of a certain quantity of tickets. The most important fact to be considered while formulating an income statement or the profit / loss statement of a company is its Revenue. Here are the primary indicators of when ownership transfers: If a business invoices in advance for a service that it will perform over a whole year, it should not allocate the entire revenue to the month that it gets paid. How to Determine a Company's Total RevenueDetermine the period for which you want to report total revenues. For example, reports and statements can be monthly, quarterly or annual.Identify each of the company's revenue streams. Product sales, services, and contract revenue are typical forms of revenues.Extract the payments received from each revenue stream during the period in question. 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Can Moodle Detect Copy Paste and Screen Sharing? How do you calculate total revenue in economics? The formula for total revenue can be written as, TR\ =\ P \times Q T R = P Q. These also allow us to see what pages and links you have visited so we can provide more The same is true of expenses. 2. The previous instance excludes the information of just how the artisan will accomplish the boosted need for his boots if he determines to provide the price cut. In any shop, the shopkeeper sells several items at different prices. Nonetheless, if you are looking to determine what your overall earnings would remain in the future, the earnings declaration will undoubtedly be less practical. Watch simple explanations of Total Revenue Test and related concepts. If 25 items are sold in a shop to earn a total revenue of Rs. Will the production cost of each boot decrease with the raised volume? 4 per copy of the newspaper. How does total revenue change when price changes? What is Stem Education and Why it is Important in 2020, Marketing Research Paper Writing: Step-by-Step Guide, 5 Ways Pets Can Boost Your Kids School Studies, Log Properties: Complete Lesson for Beginners, Learn about the circumference formula of Circle, Solving absolute value inequalities Easily. If total revenue changes in the opposite direction from price, demand is elastic. If an increase in price causes an increase in total revenue, then WebIn economics, the total revenue test is a means for determining whether demand is elastic or inelastic. How to Calculate Total Revenue in Excel?Step#1 Create the Product List table. The product list table consists of price, quantity sold, discount (if any), and selling price. Step#2 Calculate Selling Price. Selling price is essentially the number of products sold multiplied by product price. Step#3 Calculating total Revenue. To calculate the total revenue, you can use the SUM formula in excel. This test calculates how elastic the price demand is by measuring the change in the total revenue against the change in the product's price. In practice, its not uncommon to blend all of these streams but thats another story. As ever, proper advice is prudent. They should not be misused one in place of the other. Check your mastery of this concept by taking a short quiz. So, before we look at how to calculate total revenue, we need to remind ourselves about how the whole concept works and then move onto the real-world challenges of when to record revenue. Anything important to the production of your item belongs below. How do you calculate total revenue elasticity? TR = P Q You can use the total revenue test to estimate a product's price elasticity of demand. [https://blog.revolut.com/what-is-revenue/] of a business exceeds its costs over a given This can be from your primary income source, as well as any other income sources. Your Mobile number and Email id will not be published. if greater than one. It consists of things like marketing costs, workplace snacks, rental fee, and so on. Technically speaking, revenue excludes sums that a business collects on behalf of third parties. Recognise revenue when each performance obligation is satisfied. The simplest way of calculating revenue of a company is multiplying the price of a unit item with the total number of items sold. These prices are not essential to the manufacturing of what you marketed. The net revenue formula does not consider the other forms of cash income of the company such as investments etc. To calculate total revenue (TR), multiply the price per unit (P) and quantity of the product sold (Q). TR = P Q. You can use the total revenue test to estimate a product's price elasticity of demand. Since the elasticity of demand affects the total revenue, you can estimate it by observing the latter's movement. Will it decrease production time? the manufacture of a bespoke lathe with multiple prototypes) it can be more complex to determine when revenue must be recognised. Over 1,500 growing businesses are joining us every week. Total Income = Amount Offered x Price. In general, revenue can be calculated as the product of the number of goods sold and the price of the goods. relatively inelastic, price and Revenue describes the income a business receives from selling its products or services, as opposed to income from its investments in other companies or a transaction unrelated to its everyday trading. Regarding the total revenue function, only in a perfectly competitive market, p is obtained to be a constant, independent of the firms quantity sold (q). How to Market Your Business with Webinars? This was all about the topic on Total revenue formula, which plays a vital role in determining the revenue for a business. The net revenue formula computes the revenue of a person which is earned after deducting the discounts offered on the commodities that he had sold. An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. Click the card to flip Flashcards Learn Test Match Created by MMTTMMTT To use this formula, you must know the figures for your fixed and variable costs. Consequently, our artisan understands that he must cost at least 63 pairs of boots to match his overall revenue before discounting. : an increase in price has no influence on the total revenue. Revenue on Income Statement- Revenue generated by sales of goods and What is the definition of a total revenue test? It is very easy to calculate revenue and to remember the total revenue formula. How to Write APA Essay Correctly: Tips and Tricks, 3 Things to Know Before Hiring an Essay Writing Service, Learn more about DormirPreterite Conjugation. In the forthcoming subheadings, various concepts of revenue formula and their applications are explained in detail. Since the elasticity of demand affects the The only thing is that we will have to know the price of each unit good or service and the total number of goods sold. All you need to know about exchange rates, Crypto reaches milestone $1trillion dollar market cap . of units sold). Manage your everyday spending with powerful budgeting and analytics, transfer money abroad, spend easily in the local currency, and so much more. How do you calculate total revenue elasticity? Lets take a look at Total Revenue Formula. Facebook and LinkedIn, for the same purpose. Overall income is found on the earnings statement, a settled history of how your company executed over a particular period. price and total revenue go in different directions, price and total revenue are going in the same direction, when price increases or decreases and total revenue remains unchanged, elasticity of demand coefficient equation. It is very important for the shopkeeper to consider the discounts he has offered on his items. Revolut Ltd is a company registered in England and Wales (No. Total Revenue = Quantity Sold x Price of the Product. Revenue is the numerical figure obtained after deducting all kinds of expenses. Do not forget that what you acknowledge as income will undoubtedly depend upon your accounting technique. 4 What happens to total revenue when price increases? The implication of this point is that the. In other words, marginal revenue is the change in revenue per additional product sold. Revenue vs Profit: What is their Difference? {RB31}. Total Revenue and Elasticity of Demand Total revenue is the price of an item multiplied by the number of units sold: TR = P x Qd. relevant ads. The total revenue formula can be mathematically expressed as. But there is also a SaaS Lifetime calculator for you to explore. On the other hand, if the total income number appears acceptable. If so, the agency should only record as revenue the commission it earns on this booking, not the total value of the transaction. These five stages are shown below and explained in detail by ACCA (i.e. Revenue comes in various formssales revenue, rental revenue, dividend revenue, etcand is made up of two important parts: the cost and the number of units sold of each product or service. There are nuances between the terms turnover and revenue, which we outline here. The key concept in thinking about collecting the most revenue is the price elasticity of demand. 3 What is the total revenue test quizlet? There are scenarios when revenue recognition doesnt happen at a specific moment and is said to occur over time. The total cost formula is used to combine the variable and Another would be when a software developer creates a bespoke app for a client and can prove that it hosted this on the clients servers during its entire gestation. Your Mobile number and Email id will not be published. Is Certified Nursing Assistant (CNA) the Right Career Choice for You? We use cookies to personalise your experience on Revolut. Weba) Total revenue= Q x P b) Average fixed cost = TFC/Q c) Economic profit = total revenue - (explicit costs implicit costs) d) Accounting profit equals= View Answer In perfect 8 What is the definition of a total revenue test? At a basic level, the total revenue equation is when you multiply the number of units a business sells (or its number of customers) over a given period by the unit-price of these same goods or services. 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