Business Flashcards
Total cost
Fixed cost + variable cost
Variable cost per unit
Total variable cost / output
Revenue
Selling price x quantity sold
Profit
Revenue - total cost
Gross profit - operating expenses
Net profit margin
Net profit / total sales x 100
Gross profit margin
Gross profit / total sales x 100
Break even
Fixed costs / unit contribution
Unit contribution
Selling price - variable cost per unit
Margin of safety
Level of sales - break even point
Straight line depreciation
Cost - residual value / life of asset
Reducing balance depreciation
Netbook value x deprecation rate
Total variable cost
Variable cost per unit x output
Contribution
Unit contribution x units sold
Accounting equation
Assets - liabilities = capital
Return of capital employed
Net profit / capital employed x 100
