equations Flashcards
total costs
total fixed costs+total variable costs
variable costs
cost of one unit x quantity produced
revenue
price x quantity
break even
fixed cost/ sales price - variable costs
margin of safety
actual sales - break even sales
interest on loan
(total repayment - amount borrowed / borrowed amount)
x100
net cash flow
cash inflow - cash outflow
opening balance
closing balance of previous month
closing balance
opening balance + net cash flow
profit
total revenue - total costs
gross profit
sale revenue - cost of sales
gross profit margin
gross profit/ sales revenue x 100
net profit
gross profit - other operating expenses and interest
net profit margin
net profit/sales revenue x 100
average rate on return
Average Annual Profit (Total Profit/Number of Years) / Cost of Investment x 100
