equations Flashcards
total cost
fixed cost + variable cost
revenue
price x quantity
profit
revenue - total cost
Breakeven output (units)
total cost/sales price - variable cost per unit
Breakeven point
break even output x sales price
Margin of safety
actual sales - breakeven output
OR
Budgeted sales - break even output
Net cash flow
Cash inflow - cash outflow
Opening balance
closing balance of previous period
closing balance
opening balance + net cashflow
interest on loan
total repayment - borrowed amount / borrowed amount x 100
gross profit
revenue - cogs (cost goods sold)
gross profit margin
gross profit / revenue x 100
net profit
gross profit - operating expenses - (interest + tax)
net profit margin
net profit/ revenue x100
Average rate of return
total profit ÷ by number of years products last for / cost of investment x 100
