TR p x q TR q. Revenue is the main element of the income statement in business. Quantity x price revenue Of course there are other income variables like rental income and investments that also contribute to the total revenue of a company.
But lets focus on the basic principal of revenue which is how many items did you sell and how much did they cost.
P introduce the price per unit of that product while Q introduces the quantity sold during the. The formula above breaks this calculation into two parts. If he regularly sells 50 pairs per month his total revenue is 5000 100 x 50 5000. Year 1 revenue cell D3 60000 Year 2 revenue cell E3 Year 1 revenue cell D3 x 1 increase Year 2 revenue 60000 x 1 80 Year 2 revenue 108000.