Revenue refers to the total income generated from selling goods and services. It is a crucial metric for firms as it represents the inflow of funds into the business. Revenue is calculated by multiplying the price per unit by the quantity sold. For example, if a firm sells 100 units ofa product at a price of $10 per unit, the total revenue would be $1,000 ($10 * 100 units). Revenue can also be calculated for specific periods, such as monthly, quarterly, or annually. Understanding revenue is essential for firms to assess their sales performance, analyze pricing strategies, evaluate market demand, and make informed business decisions. By monitoring and analyzing revenue, firms can identify trends, adjust their marketing and sales efforts, and optimize their revenue generation. Revenue is a key component in determining a firm's profitability and financial viability.