Calculations Flashcards
Contribution Point
Selling Point - Variable Costs per unit
Total Contribution
Contribution per unit x Number of units sold
Break Even Point
Fixed Costs / Contribution per Unit
Margin of Safety
Sales - Break-Even Level of Output
Months to Break-Even
Break-Even Units / Units Produced per months
Gross Profit
Net sales - Cost of goods sold
Operating profit
Gross Profit - Selling Expenses
Net Assets
Current Assets + Fixed Assets - Current Liability
Straight Line Depreation
Asset Purchase Price - Estimated Salary Value / Estimated usesful life
Gross Profit Margin
Gross Profit / Revenue x 100
Mark Up Formula
Gross Profit / Cost of Sales x 100
Net Profit Margin
Net Profit / Revenue x 100
ROCE Formula
Net Profit before tax / Capital Employed x 100
Current Ratio Formula
Current Assets / Current Liabilities
Liquid Capital Ratio Formula
(Current assets - Inventory) / Current Liabilties
