Business numerical assesment

Question 1

Formula for break even output

Answer 1

fixed costs/cpu

Question 2

What is the formula for CPU (contribution per unit)?

Answer 2

selling price per unit - variable costs per unit

Question 3

Gross profit formula?

Answer 3

turnover - costs of goods sold

Question 4

Formula for net profit?

Answer 4

gross profit - expenses

Question 5

Formula for net profit margin?

Answer 5

net profit/turnover x100

Question 6

percentage change formula?

Answer 6

change/original x100

Question 7

Formula for closing balance?

Answer 7

net cash flow + opening balance

Question 8

How to calculate selling price from a break even chart?

Answer 8

revenue (800,000)/ output (400)

Question 9

How to calculate maximum profit from maximum sales?

Answer 9

TR-TC (800,000 - 700,000)

Question 10

two examples of fixed costs?

Answer 10

• workers salaries
• rent paid for factory

Question 11

Margin of safety formula?

Answer 11

actual sales - break even point

Question 12

How to calculate weekly profit if total spent on cafes in her area per year = £1,248,000 and she aims to get 5% of this and weekly costs = £750

Answer 12

5% = 1,248,000 /100 x 5 =62,400 (revenue)
62,400 /52(how many weeks in a year)=1,200
TR-TC (1,200 - 750) = 450