Formulae Flashcards
Sales Revenue (also called turnover)
Selling price x number sold
Profit
Total Revenue - Total Costs
Contribution
Selling Price - Variable Costs
Profit using contribution
Total Contribution - Fixed Costs
Total Costs
Fixed Costs + Variable Costs
Market or sales growth % in a year
difference (between the 2 years)/original x 100
Market Share %
small number (brand)/big number (market) x 100
Gross profit
Sales Revenue - Cost of Sales
Cost of Sales
Opening stock-closing stock + stock purchases
Net profit
Gross profit - all other costs
Total contribution
Contribution per item (sp-vc) x number sold
Break even
Fixed costs/contribution
Margin of safety
Actual level of output - break even level of output
Gross profit margin (%)
Gross profit/sales revenue x 100
Net Profit margin (%)
net profit/sales revenue x 100
Net Pay
Gross Pay - deductions
Budget variance
expected budget - actual budget
adverse variance results in worse than predicted profit and favourable results in better than predicted profit
Net cash Flow
Cash Inflows (income) - Cash outflows (expenditure)
Closing Balance
Net Cash Flow + Opening Balance
