Formula for exams Flashcards
Total Revenue
Selling Price x Number Sold
Total Fixed Cost
All fixed costs added together
Total Variable Cost
Variable cost per unit x Number sold
Total Cost
Total Fixed Cost + Total Variable Cost
Profit
Total Revenue – Total Cost
Unit Costs
Total Cost ÷ Output
Contribution per unit
Selling Price – Variable cost per unit
Break Even Point
Fixed Cost ÷ Contribution per unit
Margin of Safety
Actual Output – Break Even output
Total contribution
Total revenue – total variable costs
Total Inflows/ Total Income
All inflows/ income added together for that month
Total Outflows/ Total Expenditure
All outflows/ expenditure added together for that month
Net Cash Flow
Total inflows/income – Total outflows/expenditure
Opening Balance
Last month’s closing balance
Closing Balance
Opening Balance + Net Cash Flow
