equations Flashcards
1
Q
Contribution per unit
A
revenues - variable costs
2
Q
Total contribution
A
Contribution per unit X number of units sold
3
Q
Breakeven output
A
Fixed costs - contribution per unit
4
Q
Margin of safety
A
Actual level of output - breakeven level of output
5
Q
net assets
A
all assets - all liabilities
6
Q
Gross profit
A
revenue - cogs
7
Q
Operating profit
A
gross profit - operating expenses
8
Q
Net profit
A
operating profit - all other costs
9
Q
Profit matgins
A
profit ÷ revenue X100
10
Q
Current ratio
A
Current assets ÷ current liabilities
11
Q
Acid test ratio
A
Current assets - stock ÷ current liabilities
12
Q
Capital employed
A
Total equity + non - current liabilities
13
Q
Gearing ratio
A
Non current liabilities ÷ capital employed X 100
14
Q
ROCE
A
Operating profit ÷ capital employed X 100
15
Q
Capacity utilisation
A
Actual output ÷ maximum output X100
