ALL NEED TO KNOW EQUATIONS Flashcards
GROSS PROFIT
Sales Revenue - Cost of Goods
SALES REVENUE
Quantity Sold X Selling Price
NET PROFIT
Gross Profit - Other Expenses
RETAINED PROFITS
Sales Revenue - Total Costs
NET CURRENT ASSETS
Current Assets - Current Liabilities
TOTAL COSTS
Fixed Costs + Variable Costs
TOTAL REVENUE
Quantity Sold X Selling Price
SALES IN VALUE
Quantity Sold X Selling price per unit
BREAK-EVEN POINT
Fixed Costs / Contribution per unit
CONTRIBUTION PER UNIT
Selling Price - Variable Costs per unit
TOTAL CONTRIBUTION
Sales Revenue - Total Variable Costs
TOTAL VARIABLE COST
Variable Costs per unit X Quantity
OR
Contribution per unit X Number of Units Sold
COST OF GOODS SOLD
Opening Inventories + Purchases - Closing Inventories
PROFIT OR LOSS FOR THE YEAR
Gross Profit - Expenses + Other Income
DEPRECIATION
(Historic Value - Residual Value) / Expected Life
