Equations Flashcards
1
Q
Revenue
A
Number of items sold x selling price
2
Q
Total costs
A
Fixed costs + total variable costs
3
Q
Profit/loss
A
Revenue-costs
4
Q
Interest
A
(total amount repaid-principal) / principal x 100
5
Q
Break even
A
Fixed cost/ selling price-variable cost
6
Q
Margin of safety
A
Actual sales- break even sales
7
Q
Net cash flow
A
Cash inflows-cash outflows
8
Q
Closing balance
A
Net cash flow + opening balance
9
Q
Gross profit
A
Sales revenue- cost of sales
10
Q
Net profit
A
Gross profit- other expenses
11
Q
Gross profit margin
A
Gross profit / revenue x100
12
Q
Net profit margin
A
Net profit / revenue x100
13
Q
Average rate of return
A
Average annual profit / cost of investment x100
14
Q
Average annual profit
A
Total profit / number of years x100
