Equations for Theme 2&3 Flashcards
1
Q
Net cash flow
A
Inflows - Outflows
2
Q
Sales volume
A
Total number of units sold over a period of time
3
Q
Sales Revenue
A
Price x Quantity
4
Q
Total variable costs
A
Number of units sold x variable cost per unit
5
Q
Total costs
A
Fixed costs + Variable costs
6
Q
Profit
A
Total revenue - total costs
7
Q
Contribution per unit
A
Selling price - variable costs
8
Q
Total contribution
A
CPU x number of units sold
9
Q
Break even output
A
Fixed costs/CPU
10
Q
Margin of Safety
A
Sales volume - BEO
11
Q
Variance
A
Actual - budget
12
Q
Gross profit
A
Sales revenue - cost of sales
13
Q
Operating profit
A
Gross profit - overheads
14
Q
Net profit
A
Operating profit +/- finance of costs
15
Q
Gross profit margin
A
(Gross profit/ Sales Revenue) x100
