Equations Flashcards
1
Q
Total revenue
A
Price X Quantity
2
Q
Profit
A
Total revenue — total cost
3
Q
Margin of safety
A
Actual (or forecast) sales - Break-even output
4
Q
Break- even output
A
Fixed costs / Contribution
5
Q
Contribution per unit
A
Selling price per unit — variable cost per unit
6
Q
Total contribution (2 equations)
A
. Total revenue — total variable cost
. Unit contribution X number of units sold
7
Q
Total costs
A
Fixed costs + variable costs
8
Q
Average cost
A
Total cost / output
9
Q
Net cash flow
A
Total o cash inflows — total cash outflows
10
Q
Closing balance calculations
A
Opening balance + net cash flow
11
Q
Variance
A
Actual - Budgeted
