Final answer:
Selling price per unit multiplied by the quantity sold equals total revenue, which is a key factor in calculating a firm's income from product sales.
Step-by-step explanation:
The selling price per unit multiplied by the quantity sold equals the total revenue. Total revenue is the income a firm generates from selling its products or services. To calculate it, multiply the selling price of a single unit (price per unit) by the number of units sold (quantity). For example, if a firm sells five units of a product at a price of $25 per unit, the total revenue would be 5 units × $25/unit, which equals $125. It's also important to note that when counting profits, one must subtract the total costs from the total revenue. If the total costs exceed the total revenue, the firm experiences losses.