Equations Flashcards
1
Q
Total Revenue
A
Quantity sold x Selling Price
2
Q
Total Cost
A
Total fixed costs + Total variable costs
3
Q
Contribution
A
Selling price - Variable cost
4
Q
Breakeven
A
Fixed cost / Contribution
5
Q
Margin of safety
A
Actual sales - Breakeven
6
Q
Gross profit
A
Sales revenue - Cost of goods sold
7
Q
Net profit
A
Gross profit - Expenses + Other income
8
Q
Depreciation
A
Historic value - Residual value/Expected life
9
Q
Gross profit margin
A
Gross profit / Revenue x 100
10
Q
Net profit margin
A
Net profit / Revenue x 100
11
Q
Mark-up
A
Gross profit/Cost of sales x 100
12
Q
ROCE
A
Net profit / Capital employed x 100
13
Q
Current ratio
A
Current assets / Current liabilities
14
Q
Liquid capital ratio
A
Current assets - inventory/current liabilities
15
Q
Trade receivable days
A
Trade receivables / Credit sales x 365
