If total revenue is calculated as price x quantity, which is an example of total revenue?

• A. Total costs
• B. Total revenue
• C. Contribution margin
• D. Net profit

Answer: (B)

Total revenue is the income a business earns from selling its products or services. It is calculated by multiplying price per unit by the quantity sold, so price x quantity directly represents total revenue. For example, if a product sells for $10 and 100 units are sold, total revenue is $1,000. The other terms describe costs or profits, not revenue: total costs are the expenses of running the business; contribution margin is revenue minus variable costs and shows how much revenue contributes to fixed costs; net profit is what remains after subtracting all costs from revenue. So the option that says "Total revenue" is the correct choice.