Equations Flashcards
equation for closing balance
net cash flow + opening balance
equation for net cash flow
total cash inflows - total cash outflows
equation for sales volume
sales revenue / selling price
equation for sales revenue
selling price x sales volume
equation of total variable costs
variable cost per unit x number of units sold
equation for contribution
(2)
1) selling price per unit - variable cost per unit
2) Total contribution / number of units sold
equation for total contribution
1) contribution per unit x total number of units sold
2) total revenue - total variable costs
equation for break-even
fixed costs / contribution costs
equation for margin of safety
actual or current level of output - break even output
equation of variable costs
total variable costs / units sold
equation of gross profit
revenue - cost of sales
equation of operating profit
(2)
1) gross profit - other operating expenses
2) sales revenue - (cost of sales + other operating expenses)
equation for profit of the year
(2)
1) operating profit - interest
2) sales revenue - ( cost of sales + operating expenses + interest)
equation of gross profit margin
(gross profit / revenue) x 100
equation of operating profit margin
(operating profit / revenue) x 100
