Calculations Flashcards
Revenue
Selling price per unit x quantity sold
Total costs
Total fixed costs + Total variable costs
Profit
Total sales - total costs
Gross profit
Total revenue - costs of sales
Net profit
Total revenue - Costs of sales - other expenses
Gross profit margin (GPM)
Gross profit / Sales revenue x 100
Net profit margin (NPM)
Net profit / Sales revenue x100
Average rate of return
Average profit from the investment / cost of the investment x 100
Break even point in units
Fixed costs / (Sales price per unit - Variable costs per unit)
Total outflow
Raw materials + wages & salaries + marketing + setup costs
Total inflows
Investment + sales
Net cash flow
Total inflows - total outflows
Opening balance
Previous months closing balance
Closing balance
Opening balance + net cash flow
