Calculations Flashcards
1
Q
Sales volume
A
Sales revenue/selling price
2
Q
Sales revenue
A
Selling price x quantity sold
3
Q
Total costs
A
Fixed costs + total variable costs
4
Q
Contribution
A
Selling price - variable cost
5
Q
Total contribution
A
Sales revenue - total variable costs
6
Q
Break even point
A
Fixed costs / contribution
7
Q
Margin of safety
A
Actual output - break even level of output
8
Q
Profit
A
Revenue - total costs
9
Q
Profit margin
A
x profit / total revenue x 100
10
Q
Current ratio
A
Current assets / current liabilities
11
Q
Acid test ratio
A
Liquid assets / current liabilities
12
Q
Capacity utilisation
A
Current output / maximum output x 100
13
Q
Payback
A
- Calculate which year the investment will be covered
- Find the amount to be paid back / cash inflow for the year
- Multiply this by 12 to find the month
14
Q
Average Rate of Return
A
- Find average annual profit
2. Divide this by initial investment x 100
15
Q
Total float for an activity
A
LFT - duration - EST
