Equations Flashcards
1
Q
Revenue
A
Sales x price
2
Q
Total costs
A
Variable costs + fixed costs
3
Q
Average unit cost
A
Total cost / output
4
Q
Cost plus price
A
Total cost + % mark up
5
Q
Gross profit margin
A
Gross profit
——————- X 100
Revenue
6
Q
Profit
A
Total sales - total costs
7
Q
Net profit
A
Total revenue —- costs of sales - expenses
Or gross profit —- others expenses
8
Q
How to work out Average Rate of return
A
1 Add all the years (apart from zero which is always in negatives)
2 take away the year 0 which is the initial costs
3 divide that by all the years
4 then divide that by initial costs / 0
5 times 100 to get percentage
9
Q
Net profit margin
A
Net profit
—————- x100
Sales revenue
10
Q
Break even
A
Fixed costs / ( sales per unit - variable )
11
Q
Total variable costs
A
Cost per unit x total sold
