Equations Flashcards
1
Q
Revenue
A
Volume x Price
2
Q
variable costs
A
cost per unit x total number of units
3
Q
total costs
A
variable costs + fixed costs
4
Q
Gross profit
A
Revenue - variable costs
5
Q
gross profit margins
A
gross profit/revenue x100
6
Q
operating profit
A
Gross profit - fixed costs
7
Q
Operating profit margins
A
operating profit /revenue x100
8
Q
Net profit
A
operating profit - tax
9
Q
Net profit margins
A
net profit/revenue x100
10
Q
contribution per unit
A
Revenue - variable costs
11
Q
Total contribution
A
contribution x units sold
per unit
12
Q
Break even level of out put
A
fixed costs/
revenue - variable costs
13
Q
current ratio
A
current assets/current liabilities
14
Q
Acid test ratio
A
Current assets- inventory/current liabilities
15
Q
Capacity utilisation
A
Current output
/maximum possible output x100
