Formula's Flashcards
Percentages
10% of 150 = 10/100 × 150 = 15%
Percentage changes
difference between both numbers divided by original time 100
Averages or mean
Sum / (quantity of numbers)
Variable costs (VC) or Cost of sales
Variable cost per unit X Quantity (output)
Total costs (TC)
Fixed Costs + Variable costs
Profit/Loss
Revenue – Total costs
Gross profit (GP)
Sales revenue – Variable cost
Net profit (NP)
Sales revenue – (fixed costs + variable costs)
Gross profit margin (GPM)
Gross profit divided by Sales revenue x 100
Net profit margin (NPM)
net profit divided by sales revenue x 100
Average rate of return (ARR)
annual average profit divided by cost of investment x 100
Annual average profit
add up the profit for each year, take off the initial investment, divide by the number of years.
Break-even
fixed costs divided by Selling price – Variable costs
