10 Equations No 3 Flashcards
1
Q
Free float
A
EST of next activity - EST of this activity - duration
2
Q
Total float time
A
LFT - duration - EST
3
Q
Months for payback period
A
Amount needed / amount in year X 12
4
Q
Average profit
A
Total profit / number of years
5
Q
Average rate of return
A
Average profit / initial investment X 100
6
Q
Capacity utilisation
A
Existing output over a given time period / max possible output over a given time period X 100
7
Q
Break even
A
Fixed costs / total contribution
8
Q
Total contribution
A
Selling price - variable costs
9
Q
Margin of safety
A
Actual output / break even output
