Business equations Flashcards
1
Q
Total contribution
A
Total revenue- total variable costs
2
Q
Contribution per unit
A
Selling price- variable costs(per unit)
3
Q
Break even point
A
Fixed costs / contribution per unit
4
Q
Margin of safety
A
Actual level of output/ break even level output
5
Q
Revenue
A
Unit price x units sold
6
Q
PED
A
% change in quantity demand / % change in price
7
Q
YED
A
% change in quantity demand / % change in income
8
Q
Added value
A
Sales revenue - costs per unit
9
Q
Gross profit
A
Sales revenue- cost of sales
10
Q
GPM
A
Gross profit / sales revenue x100
11
Q
% change
A
Change / original x100
12
Q
Profit
A
Contribution - fixed costs
13
Q
Operating(net) profit
A
Gross profit- (fixed + variable costs)
14
Q
Current ratio
A
Current assets / current liabilities
15
Q
Acid test ratio
A
Current assests-stock / current liabilities.
