EQUATIONS Flashcards
1
Q
Gross profit?
A
Revenue - cost of sales
2
Q
Operating profit?
A
Gross profit - operating costs
3
Q
Profit for the year?
A
Operating profit - tax, interest
4
Q
Gross profit margin?
A
Gross profit / revenue x 100
5
Q
Operating profit margin?
A
Operating profit / revenue x 100
6
Q
Profit for the year margin?
A
Profit for the year / revenue x 100
7
Q
Profit?
A
Total revenue - total costs
8
Q
Total costs?
A
Total variable costs + fixed costs
9
Q
Contribution per unit?
A
Selling price - variable costs per unit
10
Q
Break even?
A
Fixed costs / contribution per unit
11
Q
Margin of safety?
A
Units sold - break even point
12
Q
NET cash flow?
A
Inflows - outflows
13
Q
Closing balance?
A
Opening balance - NET cash flow
14
Q
Negative?
A
Number in ( )
15
Q
Revenue?
A
selling price per unit x number of units sold
