This revision video considers some of the ways businesses can increase their total revenues.
Factors influencing business revenues
In some industries & markets, revenues are highly cyclical - i.e. exposed to changes in the macroeconomic cycle (link to products having a high, positive income elasticity of demand).
For some goods and services, demand is “counter-cyclical” i.e. may rise during a recession / slowdown.
Other businesses might be exposed to external economic shocks e.g. those sensitive to changes in global trade / public health crises.
There are two main approaches to increasing total revenue:
Increasing the volume of sales:
Achieve a higher selling price per unit:
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