Question

Identify and explain the following concept:

Abhijeet sold 15 chairs for ₹ 3000, for each chair he earned ₹ 200.

Answer 1

Concept: Total Revenue and Average Revenue

Explanation:

Total Revenue is the total value of sales, calculated as:

Total Revenue = Profit × Quantity

= 200 × 15

= 3000

Average Revenue is the revenue per unit sold, calculated as:

Average Revenue = `"Total Revenue"/"Quantity Sold"`

= `3000/15`

= 200

Therefore, the ₹ 3,000 represents Abhijeet's Total Revenue, and the ₹ 200 represents his Average Revenue (selling price per chair).