Equations Flashcards
1
Q
Gross profit equation
A
Revenue - cost of sales
2
Q
Mark up equation
A
Gross profit/revenue x 100
3
Q
Gross profit margin
A
GP/revenue x100
4
Q
Revenue
A
Selling price x quantity sold
5
Q
Net profit
A
Revenue-fixed and total variable costs
6
Q
Net profit margin
A
NP/revenue x 100
7
Q
Total costs
A
Fixed costs + variable costs
8
Q
Break even
A
Fixed costs/ contribution
9
Q
Contribution
A
Revenue- total variable costs
10
Q
Contribution per unit
A
Selling price - variable costs
11
Q
Average rate of return
A
Annual average profit/ initial capital outlay x 100
