Business equations Flashcards
Percentage change
new-old/old X 100
Revenue
quantity sold X selling price
Total cost
Variable costs + fixed costs
Profit
Total revenue - total costs
Gross profit
Revenue - cost of goods sold
Net profit
Gross profit - all other expenses
Interest
Total repayment-borrowed amount/ borrowed amount X 100
Breakeven
fixed costs / contribution
Contribution
selling price - variable costs
Margin of safety
actual - breakeven
Percentage change
Difference/original X 100
Net cash flow
Cash inflows - cash outflows
Closing balance
opening balance + net cash flow
Opening balance
Last months closing balance
Gross profit
sales revenue - cost of sales
Net profit
Gross profit - other operating expenses and intrest
Gross profit margain
gross profit/sales revenue x 100
Net profit margain
net profit/sales revenue x 100
Average rate of return
Average annual profit/cost of investment x 100
Market share
business or product sales/ total sales in market x 100
