Formula M Flashcards
TC (total cost) =
TFC (total fixed costs) + TVC (total variable costs)
Revenue =
Price x quantity
Break even point in units =
Fixed cost
——————————-
(Sales price - variable cost)
Break even point in costs/revenue =
Break even point in units x sales price
Margin of safety =
Actual or budgeted sales - break even sales
Interest (on loans) in % =
Total repayment - borrowed amount x 100
_________________________
Borrowed amount
Net cash-flow =
Cash inflows - cash outflows in a given period
Opening balance =
Closing balance of the previous period
Closing balance =
Opening balance + net cash-flow
Gross profit =
Sales revenue - cost of sales
Gross profit margin (%) =
Gross profit x 100
_________
Sales revenue
Net profit =
Gross profit - other operating expenses and interest
Net profit margin (%) =
Net profit x 100
________
Sales revenue
Average rate of return (%) =
Average annual profit (total profit / no. of years) x 100
_____________________________
Cost of investment
