Finance Formula Sheet-

Question 1

What is the formula for total cost?

Answer 1

Total cost= Total variable cost+ fixed cost

Question 2

What is the equation for total revenue?

Answer 2

total revenue= selling price*number of units sold

Question 3

What is the equation for total variable cost?

Answer 3

total variable cost= variable cost*number of units

Question 4

What are the three calculations for profit?

Answer 4

profit= total revenue-total costs
profit=margin of safety*contribution per unit
profit=total contribution-fixed cost

Question 5

what is the equation for break even quantity?

Answer 5

Break even quantity= fixed cost/ contribution per unit

Question 6

What is the equation for margin of safety?

Answer 6

Margin of safety= current output- break even point

Question 7

what is the equation for contribution per unit?

Answer 7

Contribution per unit= selling price- variable cost

Question 8

what are the two equations for total contribution?

Answer 8

total contribution= total revenue- total variable cost
total contribution= contribution per unit*quantity