Calculations Flashcards
1
Q
Revenue
A
price sold x number sold
2
Q
Total Costs
A
fixed costs + variable costs
3
Q
Average Total Costs
A
total costs / number produced
4
Q
Average Fixed Costs
A
total fixed costs / number produced
5
Q
Average Variable Costs
A
total variable costs / number produced
6
Q
Profit
A
revenue - costs
7
Q
Contribution
A
selling price - variable costs per item
8
Q
Break Even
A
fixed costs / contribution (units not currency)
9
Q
Margin of Safety
A
expected or actual sales - break even
10
Q
Gross Profit
A
revenue - costs of goods sold
11
Q
Operating Profit
A
gross profit - fixed costs
12
Q
Net Profit
A
operating profit - tax and interest
13
Q
Gross Profit Margin
A
gross profit / sales revenue x100
14
Q
Operating Profit Margin
A
operating profit / sales revenue x100
15
Q
Net Profit Margin
A
net profit / sales revenue x100
