1.3 Business Calculations Flashcards
Revenue =
Sales price x Quantity
SP x Q
Total costs =
Fixed costs + variable costs
FC + VC
Breakeven: Contribution per unit
Sales price - variable cost per unit
SP - VCpU
Breakeven Output in Units =
Fixed costs/contribution per unit
Or
Fixed costs/(sales price - variable cost)
FC/(SP - VC)
Breakeven in costs/revenue
Breakeven output x selling price
BEO x SP
Profit or loss =
Revenue - Total cost
R-TC
Net cash flow =
Cash inflow - cash outflow
CI -CO
Closing balance =
Opening balance + net cash flow
OB + NCF
Opening balance =
Closing balance of previous month
Interest paid =
Repayable amount - borrowed amount
RA - BA
Interest rate =
Interest paid/borrowed amount x 100
IP/BA
Interest rate (full calculation) =
(Repayable amount- borrowed amount)/borrowed amount x 100
(RA -BA)/BA x 100
Inverse Rule:
Cash inflow =
Net cash flow +’cash outflow
Inverse rule:
Cash outflow =
Cash inflow - net cash flow
Inverse rule:
Revenue =
Profit + total cost
Inverse rule:
Total cost =
Revenue - profit
Inverse rule:
Breakeven output
Breakeven point in cost/revenue (BE£) / sales price
Variable cost as a percentage of total =
Work out the total costs (FC + VC)
Then
Variable cost/total cost x 100
Fixed cost as a percentage of total =
Work out the total costs (FC + VC)
Then
Fixed cost/total cost x 100
To work out the average of 4 values =
Add together the 4 values to get total
Divide the total by 4
