What Is The Formula For Revenue Complete Guide

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what is the formula for revenue. Thus in the most basic form the revenue formula will be. Of Units Sold x Average Price.

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Sales Revenue Units Sold x Sales Price. Revenue Quantity Price. Thus in the most basic form the revenue formula will be.

Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise.

To do this take your gross sales C1 and subtract the sum of your deductions C2 C3 and C4. Net Revenue Formula Gross Revenue Directly Related Selling Expenses Why Calculate Net Revenue. Add all income generated from company sales during the time covered by the income statement to get gross revenue. For service-based companies the formula is Revenue Number of Customers x Average Price of Services.