equationss Flashcards
Revenue =
Quantity/Output * Price
Productivity =
Output/Input
Labor Productivity
Output/Number of Employees
Working Capital
Current Assets - Current Liabilities
Capital Employed/Share Holders Funds =
Total Assets - Total Liabilities
Profit =
Revenue - Cost of Sales
Profit (break-even) =
Total Revenue - Total Costs
Average Costs =
Total Costs/Total Output
Total Costs =
Fixed Costs + Variable Costs
Break Even Point =
Fixed Costs/ Contribution per unit
OR
Fixed Costs/Unit Price-Variable Cost
Contribution Per Unit =
Unit or Selling Price - Variable Costs
Margin Of Safety =
Maximum Output - Break Even Output
Gross Profit =
Revenue - Cost of Sales
Gross Profit Margin =
Gross profit/Revenue * 100
Net Profit =
Gross Profit - Expenses