How is average revenue calculated?

The calculation of average revenue is done by dividing total revenue by the number of units sold, which directly corresponds to the correct formula: (units sold x price) / total units sold. This method effectively gives the revenue generated per unit sold, showcasing the average amount earned from each sale.

In the formula provided, "units sold x price" represents the total revenue generated from sales, while "total units sold" indicates the number of units involved in the sales process. By using this calculation, businesses can understand their revenue performance and assess how much they earn on average for each product sold.

The other options do not accurately represent the calculation of average revenue. For example, dividing total revenues by total costs relates more to profitability analysis rather than revenue per unit. Similarly, subtracting expenses from total sales focuses on net profit rather than the average revenue. The formula with addition in the last option is unnecessarily complicated and does not reflect the standard calculation for average revenue. Thus, the chosen correct answer succinctly captures the essence of average revenue calculation.