Business equations Flashcards
1
Q
Percentage change
A
new-old/old X 100
2
Q
Revenue
A
quantity sold X selling price
3
Q
Total cost
A
Variable costs + fixed costs
4
Q
Profit
A
Total revenue - total costs
5
Q
Gross profit
A
Revenue - cost of goods sold
6
Q
Net profit
A
Gross profit - all other expenses
7
Q
Interest
A
Total repayment-borrowed amount/ borrowed amount X 100
8
Q
Breakeven
A
fixed costs / contribution
9
Q
Contribution
A
selling price - variable costs
10
Q
Margin of safety
A
actual - breakeven
11
Q
Percentage change
A
Difference/original X 100
12
Q
Net cash flow
A
Cash inflows - cash outflows
13
Q
Closing balance
A
opening balance + net cash flow
14
Q
Opening balance
A
Last months closing balance
15
Q
Gross profit
A
sales revenue - cost of sales
