business equations theme 2 Flashcards
net cash flow equation
total infield - total outflow
sales volume equation
total number of units sold over a period of time
sales revenue equation
number of units sold x unit price
total variable cost equation
number of units sold x variables cost per unit
total costs equation
fixed costs + variable costs
contribution per unit equation
selling price per unit - variable cost per unit
total contribution equation
contribution per unit x number of units sold
break- even equation
fixed costs / contribution per unit
variance equation
actual - budget
gross profit equation
sales revenue minus cost of sales
operating profit equation
gross profit minus overheads
net profit equation
operating profit +/- finance costs
gross profit margin equation
gross profit / sales revenue x100
operating profit margin equation
operating profit /sales revenue x 100
profit for the year, ( net profit) equation
profit for the year / sales revenue x 100
