Business Formulas Flashcards
1
Q
What is the formula for total costs?
A
Total costs + Variable costs = Total costs
2
Q
What is the formula for profit?
A
Revenue - Total costs = Profit
3
Q
What is the formula for Total Variable Cost?
A
Variable Cost x Quantity sold = Total Variable Cost
4
Q
What is the formula for Revenue?
A
Price x Quantity sold = Total Revenue
5
Q
What is the formula for the break-even quantity?
A
Fixed cost/ (Price - Variable Cost) = The Break Even Quantity
6
Q
What is the formula for the Margin of Safety?
A
Sales - The Break Even Quantity = Margin of Safety
