Formula's Flashcards
1
Q
Total costs
A
Total costs = fixed costs + variable costs
2
Q
Average costs
A
Average costs = total costs/ amount sold
3
Q
Sales revenue
A
Sales revenue = quantity sold x selling price
4
Q
Break-even output
A
Break-even output = total fixed costs/(selling price-variable costs)
5
Q
Margin of safety
A
Margin of safety = actual sales - break even sales
6
Q
Gross profit
A
Gross profit = revenue - cost of buying goods
7
Q
Net profit
A
Net profit = gross profit - expenses
8
Q
Gross profit margin
A
(Gross profit/revenue)x100
9
Q
Net profit margin
A
(Net profit/revenue)x100
