Average Revenue Calculator

Formula

The formula to calculate the Average Revenue (AR) is:

\[ AR = \frac{TR}{Q} \]

Where:

$ AR $ is the average revenue per unit ($).
$ TR $ is the total revenue ($).
$ Q $ is the total number of units sold.

Example

Let's say the total revenue ($ TR $) is $50,000 and the total number of units sold ($ Q $) is 1,000. Using the formula:

\[ AR = \frac{50,000}{1,000} \]

We get:

\[ AR = 50 \text{ $/unit} \]

So, the Average Revenue ($ AR $) is $50 per unit.

What is Average Revenue?

Average revenue is defined as the ratio of total revenue to total units of sale. It helps in understanding the revenue generated per unit sold, which can be useful for pricing strategies and financial analysis.