Business Equations Flashcards
Give the Equation for Total Costs
Total fixed costs + Total variable costs
Give the Equation for Profit/Loss
Revenue - total costs
What are the 3 Equations for Revenue
Sales price per unit x Quantity sold
Gross profit + Cost of sales
Profit + Cost of sales
What is the Equation for Interest (on loans) in %
Total repayment - borrowed amount / borrowed amount x 100
What is the Equation for Net cash flow
Total cash inflows - total cash outflows in a given period
How do you work out the Opening balance in a cash flow forecast
Closing balance of the previous period
What is the Equation for the Closing balance of a cash flow forecast
Opening balance + Net cash flow
What is the Equation for Total inflows in a cash flow forecast
Net cash flow + total outflows
What is the Equation for Total outflows in a cash flow forecast
Total inflows - Net cash flow
How do you know where the break even point is on a break even chart
When total revenue = total costs
What is the Equation for Break even point in units
Fixed costs / (Sales price per unit - Variable costs per unit)
What is the Equation for Break even point in costs/revenue
Break even point in units x Sales price
What is the Equation to find Profit/Loss from a break even chart
Total revenue - total costs
What is the Equation to work out Margin of safety
Actual or budgeted output - Break even point
What is the Equation to work out Average rate of return in %
Average annual profit / Cost of investment x 100
