Equations Theme 2 and 4 Flashcards
1
Q
Sales revenue =
A
price (each item) x quantity
2
Q
What is the equation for:
- net cash flow =
- closing balance =
- opening balance =
A
- inflow-outflow
- opening balance + net cash flow
- closing balance of previous period
3
Q
Equation for profit:
A
total revenue-total costs
4
Q
Equation for total costs:
A
TVC+TFC
5
Q
Equation for total revenue:
A
price x quantity
6
Q
Equation for breakeven:
A
total costs = total revenue
7
Q
Equation for total contribution:
A
contribution per unit x quantity
8
Q
Contribution per unit =
A
selling price - variable cost per unit
9
Q
Breakeven output
A
contribution per unit
10
Q
Margin of safety =
A
maximum output - break-even output
