Business formulas (theme 2) Flashcards by taran soor

Q

What’s the formula for contribution per unit?

A

Selling price - variable costs

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Q

What’s the formula for total contribution?

A

selling price - variable cost x quantity sold

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Q

Whats the formula for profit (using contribution)?

A

Total contribution - fixed costs

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Q

Whats the formula for sales revenue?

A

Selling price x quantity sold

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Q

Whats the formula for ales volume?

A

Sales revenue / selling price

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Q

What’s the formula for total costs?

A

total fixed costs + total variable costs

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Q

Whats the formula for profit?

A

Total revenue - total costs

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Q

Whats the formula for break even?

A

fixed costs / selling price - variable costs

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Q

What’s the formula for margin of safety?

A

Actual sales - break even sales

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Q

Whats the formula for gross profit?

A

Sales revenue - cost of sales

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Q

Whats the formula for operating profit?

A

Gross profit - expenses

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Q

Whats the formula for net profit?

A

Operating profit - taxes

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Q

Whats the formula for gross profit margin?

A

Gross profit / sales revenue x 100

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Q

Whats the formula for operating profit margin?

A

Operating profit / sales revenue x 100

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Q

Whats the formula for net profit margin?

A

Net profit / sales revenue x 100

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Q

Whats the formula for current ratio?

A

current assets / current liabilities

Q

Whats the formula for acid test ratio?

A

Current assets - inventory / current liabilites

Q

Whats the formula for budget variance?

A

Actual figure - budget figure

Q

Whats the formula for net cash flow?

A

inflows - outflows

Q

Whats the formula for closing balance?

A

Net cash flow + opening balance

Q

Whats the formula for opening balance?

A

Previous months closing balance

Q

Whats the formula for productivity?

A

Output / number of workers

Q

Whats the formula for capacity utilisation?

A

Current output / capacity x 100

Q

Whats the formula for average cost?

A

Total costs / quantity