Equations Flashcards
Revenue
Volume x Price
variable costs
cost per unit x total number of units
total costs
variable costs + fixed costs
Gross profit
Revenue - variable costs
gross profit margins
gross profit/revenue x100
operating profit
Gross profit - fixed costs
Operating profit margins
operating profit /revenue x100
Net profit
operating profit - tax
Net profit margins
net profit/revenue x100
contribution per unit
Selling price per unit-variable costs per unit
Total contribution
Total revenue-total variable costs
Break even level of out put
fixed costs/
revenue - variable costs
current ratio
current assets/current liabilities
Acid test ratio
Current assets- inventory/current liabilities
Capacity utilisation
Current output
/maximum possible output x100
Margin of safety
Sales volume-break even output
Contribution margin
Revenue-variable costs
Break even point
Fixed cost/contribution margin
