equations Flashcards
sales revenue
price x quantity
fixed costs
total costs - (variable cost per unit x number of units produced)
variable costs
quantity sold x variable cost of item
total costs
fixed costs + variable costs
net cash flow
total inflows - total outflows
closing bank balance
opening balance + net cash flow
unit costs
total costs / output
contribution
revenue - total variable costs
contribution per unit
price - variable cost per unit
profit
total revenue - total costs
gross profit
total revenue - cost of sales
operating profit
gross profit - overheads
or
revenue - (overheads + cost of sales)
net profit
revenue - total costs (incl. tax and interest)
gross profit margin
(revenue - cost of sales/revenue) x 100
or
(gross profit/revenue) x 100
operating profit margin
(operating profit/total revenue) x 100
break even
fixed costs/contribution per unit
margin of safety
sales output - break even
variance
actual figure - budgeted figure
current ratio
current assets/current liabilities
acid test ratio
current assets - stock/current liabilities
working capital
current assets - current liabilities
productivity
output/number of workers
capacity utilisation
(current output/max.output) x100
interest
(total repayment - borrowed amount/borrowed amount) x 100
