2.1 formulas Flashcards
1
Q
Formula for sales revenue
A
price x quantity
2
Q
Formula for profit
A
total revenue - total costs
3
Q
Formula for break even
A
(SP - VC) or contribution per unit
4
Q
Formula for contribution per unit
A
selling price - variable cost per unit
5
Q
Formula for variable cost per unit
A
Units
6
Q
Formula for total contribution
A
total sales - total variable costs
7
Q
Formula for Margin of Safety
A
current level of output - break even point
8
Q
Formula for net cash flow
A
total inflows - total outflows
9
Q
Formula for closing balance
A
opening balance + net cash flow
