Total revenue is calculated as price per unit multiplied by the number of units sold.

• A. Price per unit times quantity
• B. Variable costs
• C. Fixed costs
• D. Contribution margin

Answer: (A)

Total revenue is the total income from sales, calculated by multiplying the price per unit by the number of units sold. This captures how revenue grows with both how much you charge for each unit and how many units you sell. For example, selling a widget at $15 each and moving 200 units yields $3,000 in revenue. The other terms describe different concepts: variable costs are costs that rise with production, fixed costs stay the same regardless of output, and contribution margin is the revenue left after subtracting variable costs to help cover fixed costs and profit. So the product of price per unit and quantity is the correct way to determine total revenue.