Final answer:
When finding revenue and COGS, you multiply the number of units by the price per unit. COGS is the cost incurred in producing or purchasing the goods that were sold and is also multiplied by the number of units sold.
Step-by-step explanation:
When finding revenue and COGS (Cost of Goods Sold), you use the number of units sold multiplied by the price of each unit. Revenue is calculated by multiplying the quantity sold by the price per unit. COGS is the cost incurred in producing or purchasing the goods that were sold and is also multiplied by the number of units sold.
When finding revenue and the Cost of Goods Sold (COGS), you use the product of the number of units sold and the price per unit. Revenue is calculated by multiplying the price per unit by the quantity of units sold. Similarly, to determine COGS, which is a component of total cost, you must account for the costs associated with producing and selling the units. Total cost involves converting inputs into outputs, and each input incurs a cost for the firm. The total cost is the sum of these individual costs. When assessing short term and long term costs, remember that they can differ due to various factors.