1.3 Business Calculations

Question 1

Revenue =

Answer 1

Sales price x Quantity
SP x Q

Question 2

Total costs =

Answer 2

Fixed costs + variable costs
FC + VC

Question 3

Breakeven: Contribution per unit

Answer 3

Sales price - variable cost per unit
SP - VCpU

Question 4

Breakeven Output in Units =

Answer 4

Fixed costs/contribution per unit
Or
Fixed costs/(sales price - variable cost)
FC/(SP - VC)

Question 5

Breakeven in costs/revenue

Answer 5

Breakeven output x selling price
BEO x SP

Question 6

Profit or loss =

Answer 6

Revenue - Total cost
R-TC

Question 7

Net cash flow =

Answer 7

Cash inflow - cash outflow
CI -CO

Question 8

Closing balance =

Answer 8

Opening balance + net cash flow
OB + NCF

Question 9

Opening balance =

Answer 9

Closing balance of previous month

Question 10

Interest paid =

Answer 10

Repayable amount - borrowed amount
RA - BA

Question 11

Interest rate =

Answer 11

Interest paid/borrowed amount x 100
IP/BA

Question 12

Interest rate (full calculation) =

Answer 12

(Repayable amount- borrowed amount)/borrowed amount x 100
(RA -BA)/BA x 100

Question 13

Inverse Rule:
Cash inflow =

Answer 13

Net cash flow +’cash outflow

Question 14

Inverse rule:
Cash outflow =

Answer 14

Cash inflow - net cash flow

Question 15

Inverse rule:
Revenue =

Answer 15

Profit + total cost

Question 16

Inverse rule:
Total cost =

Answer 16

Revenue - profit

Question 17

Inverse rule:
Breakeven output

Answer 17

Breakeven point in cost/revenue (BE£) / sales price

Question 18

Variable cost as a percentage of total =

Answer 18

Work out the total costs (FC + VC)
Then
Variable cost/total cost x 100

Question 19

Fixed cost as a percentage of total =

Answer 19

Work out the total costs (FC + VC)
Then
Fixed cost/total cost x 100

Question 20

To work out the average of 4 values =

Answer 20

Add together the 4 values to get total
Divide the total by 4