Topic 3.3: Costs and Revenues Questions

Harbour View Aquarium, a family-run attraction on the coast, earns almost all of its money from entry tickets. State two types of revenue stream that the aquarium could have.

Greenleaf Foods makes plant-based ready meals and has just won a contract with a supermarket chain. Table 1 shows its sales revenue (in $ millions). | | 2023 | 2024 | 2025 | |---|---|---|---| | Sales revenue | 70 | 76 | 84 | Using Table 1, calculate Greenleaf’s forecast sales revenue for 2026 if the contract raises sales by 25% (no working required).

A small online bakery sells boxed cupcakes. For each box, it uses ingredients costing $6 and packaging costing $1. It pays a delivery partner $2 per box delivered. The bakery also pays monthly rent of $900 and insurance of $100. a) Identify two variable costs in this scenario. b) Identify two fixed costs in this scenario.

Oakleaf Furniture makes wooden tables and chairs in one workshop, where six carpenters work alongside a workshop manager and an office team. State two examples of direct costs for Oakleaf Furniture.

Riverside Hall is a community arts centre run as a non-profit organization. State two types of revenue stream for an organization like Riverside Hall.

A sports club sells 900 season tickets at $220 each and 6,000 single match tickets at $18 each. Calculate the club’s total ticket revenue (show all your working).

Peak Fitness is a gym with 1,200 members, housed in a rented warehouse full of treadmills and weights. State two examples of fixed costs.

A mobile phone shop pays a monthly line rental of $40 plus $0.05 per text message sent by staff. a) Identify the type of cost described. b) Explain your answer.

Cogwheel Bikes assembles electric bicycles from bought-in parts. Table 1 shows its forecast figures for 2026. | Item | Figure | |---|---| | Fixed costs | $240 000 | | Variable cost per bicycle | $150 | | Selling price per bicycle | $400 | | Number of bicycles produced | 2 000 | Using Table 1, comment on the effect on fixed costs if the number of bicycles produced decreases to 1 500.

Wickford Candles hand-pours scented candles in a rented workshop. Table 1 shows its figures for the year. | Item | Figure | |---|---| | Fixed costs | $96 000 | | Variable cost per candle | $3 | | Selling price per candle | $12 | | Number of candles produced | 20 000 | Using Table 1, comment on the effect on fixed costs if the number of candles produced decreases to 16 000.

A pop-up smoothie bar sells 350 smoothies at $4.80 each and 120 snack bowls at $6.50 each in one day. Calculate the bar’s total revenue for the day (show all your working).

Bay Ferries Ltd carries passengers between three islands. Table 1 shows selected financial information (all figures in $ millions). | | 2023 | 2024 | 2025 | |---|---|---|---| | Sales revenue | 48 | 52 | 60 | | Profit before interest and tax | 6 | 7 | 8 | Using Table 1, calculate Bay Ferries’ sales revenue for 2026 if sales were to increase by 15% (no working required).

Nimbus is a free weather app used by two million people. State two types of revenue stream that a business such as Nimbus could earn.

Brightsmile Dental runs two clinics and employs four dentists on yearly salaries. State two examples of fixed costs.

Sunburst Juices presses and bottles orange juice. Table 1 shows its forecast figures for 2026. | Item | Figure | |---|---| | Fixed costs | $450 000 | | Variable cost per bottle | $0.80 | | Selling price per bottle | $2.50 | | Number of bottles produced | 600 000 | Using Table 1, comment on the effect on fixed costs if the number of bottles produced decreases to 500 000.

A bicycle manufacturer has monthly fixed costs of $12,000 and a variable cost of $180 per bicycle. Calculate the total cost of producing 100 bicycles in one month (show all your working).

Riverbend Kayaks hires out kayaks by the hour from a boathouse it leases beside the river. Define the term fixed cost.

Copperplate Print is a small printing shop whose biggest bill is the salaries of its two designers. Define the term fixed cost.

Bloom Street Florist sells flowers from one shop and delivers them in its own van. State two examples of fixed costs.

A café’s gross profit for the year was $60,000. Its expenses for the year were rent $18,000, wages $28,000, utilities $6,000 and marketing $4,000. It paid no interest and no tax. Calculate the café’s profit for the period (show all your working).