1. What is Total Revenue?

Total Revenue (TR) is the total income a business receives from selling goods or services. It's calculated by multiplying the price (P) of the goods by the quantity (Q) sold.

2. How Does the Calculator Work?

The calculator uses the Total Revenue formula:

Where:

• \( P \) — Price per unit ($)
• \( Q \) — Quantity sold (units)

Explanation: The equation shows the direct relationship between price, quantity sold, and total revenue.

3. Importance of Total Revenue Calculation

Details: Total revenue is a key metric for businesses to understand their sales performance, set pricing strategies, and make production decisions.

4. Using the Calculator

Tips: Enter price in dollars and quantity in units. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between total revenue and profit?
A: Total revenue is all income from sales, while profit is revenue minus all expenses and costs.

Q2: How does price elasticity affect total revenue?
A: If demand is elastic, lowering prices may increase total revenue. If inelastic, raising prices may increase total revenue.

Q3: What are some limitations of total revenue?
A: It doesn't account for costs, so a high TR doesn't necessarily mean high profitability.

Q4: How often should businesses calculate total revenue?
A: Typically calculated monthly, quarterly, and annually for financial reporting and analysis.

Q5: Can total revenue be negative?
A: No, since both price and quantity are positive values, total revenue cannot be negative.