Finance Flashcards
Total revenue
Total revenue = selling price per unit x quantity sold
TR = SP x QS
Total variable costs
Total variable costs = variable cost per unit x quantity sold
TVC = VC per unit x QS
Average total costs
Total costs/number of units produced
Profit
Profit = Total revenue - total costs
Profit = TR - TC
Percentage change
change/original x100
Contribution per unit
Contribution per unit = selling price per unit - variable cost per unit
Contribution per unit = SP - VC per unit
Total contribution
Total contribution = contribution per unit x quantity sold
Break even
Break even = fixed costs/contribution per unit
Break even = FC/(SP-VC per unit)
Margin of safety
Actual or expected output - break even point
Profit (the contribution method)
Profit = (Quantity sold x contribution per unit) - fixed costs
Sales variance
Actual figures - budgeted figures
Expenditure variance
Budgeted figures - actual figures
Annual depreciation
(Historic cost - residual value)/expected lifespan
