Equations I Flashcards

1
Q

Revenue

A

Price x Quantity Sold

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2
Q

Total costs

A

Fixed costs + Variable costs

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3
Q

Profit

A

Total revenue - total costs

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4
Q

Gross profit

A

Revenue - costs of sales

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5
Q

Gross profit margin (%)

A

( Gross profit / Revenue ) x 100

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6
Q

Operating Profit Margin (%)

A

(Operating profit / revenue) x 100

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7
Q

Net profit margin (%)

A

(Net profit / revenue) x 100

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8
Q

Return on capital employed (%)

A

(Operating profit / capital employed) x 100

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