What does Sales Revenue represent?

Sales Revenue represents the total income generated from selling goods or services, and it is calculated by multiplying the number of units sold by the price per unit. This formula captures the core concept of sales transactions, where each unit sold contributes to the overall revenue based on its selling price.

Understanding sales revenue is crucial for businesses, as it provides a clear picture of financial performance and helps assess profitability. Knowing this figure enables companies to make informed decisions about pricing strategies, marketing efforts, and production planning.

The other options do not accurately represent sales revenue: Units produced multiplied by cost per unit reflects production costs rather than sales figures. The difference between total costs and total variable costs pertains to profit margins and not revenue. Market prices multiplied by demand illustrate potential revenue scenarios but do not directly represent the actual sales revenue realized from transactions.