Question

RCO Manufacturing is an electronics manufacturer and retailer. Its main products are ultrabook computers, PCs and calculators. The current price of the ultrabook is £500, the PC is £800 and the calculator is £40. This year the firm sold 10,000 ultrabooks, 20,000 PCs and 1 million calculators.

Answer 1

Question Completion:

What is the total revenue?

Answer:

RCO Manufacturing

The total revenue from the three products is $61 million.

Explanation:

a) Data and Calculations:

Products                 Ultrabook      PC              Calculator

Current price             $500          $800                 $40

Units sold                10,000        20,000                1 million

Product revenue   $5 million    $16 million      $40 million

Total revenue = $61 million ($5 + 16 + 40 million)

b) The total sales revenue is the gross revenue generated from all sales of goods or services by ROC Manufacturing.  The figure is obtained by multiplying the current price of each product with the number of units sold, and then summing up the three product lines.