Aqa Gcse Business equations Flashcards
1
Q
Revenue
A
Revenue =selling price x quantity sold
2
Q
Total costs
A
Total costs =fixed costs +variable costs
3
Q
Profit
A
Profit =total revenue - total costs
4
Q
Gross profit
A
Gross profit =Revenue-cost of sales
5
Q
Net profit
A
Net profit =gross profit – Expenses
6
Q
Gross profit Margin
A
Gross profit margin =(Gross profit/Revenue) x 100
7
Q
Net profit Margin
A
Net profit margin =(Net profit/Revenue)x100
8
Q
Average Rate of Return (ARR)
A
ARR=(Average annual profit/cost of investment) x100
9
Q
Break-even point (in units)
A
Break-even =Fixed costs/(selling price-variable cost per unit)
10
Q
Margin of safety
A
Margin of safety =Actual sales–Break even sales
11
Q
Net cash flow
A
Net cash flow =inflows-outflows
12
Q
Closing Balance
A
Closing Balance =opening balance +Net cash flow
