Formulae

Question 1

Sales Revenue (also called turnover)

Answer 1

Selling price x number sold

Question 2

Profit

Answer 2

Total Revenue - Total Costs

Question 3

Contribution

Answer 3

Selling Price - Variable Costs

Question 4

Profit using contribution

Answer 4

Total Contribution - Fixed Costs

Question 5

Total Costs

Answer 5

Fixed Costs + Variable Costs

Question 6

Market or sales growth % in a year

Answer 6

difference (between the 2 years)/original x 100

Question 7

Market Share %

Answer 7

small number (brand)/big number (market) x 100

Question 8

Gross profit

Answer 8

Sales Revenue - Cost of Sales

Question 9

Cost of Sales

Answer 9

Opening stock-closing stock + stock purchases

Question 10

Net profit

Answer 10

Gross profit - all other costs

Question 11

Total contribution

Answer 11

Contribution per item (sp-vc) x number sold

Question 12

Break even

Answer 12

Fixed costs/contribution

Question 13

Margin of safety

Answer 13

Actual level of output - break even level of output

Question 14

Gross profit margin (%)

Answer 14

Gross profit/sales revenue x 100

Question 15

Net Profit margin (%)

Answer 15

net profit/sales revenue x 100

Question 16

Net Pay

Answer 16

Gross Pay - deductions

Question 17

Budget variance

Answer 17

expected budget - actual budget

adverse variance results in worse than predicted profit and favourable results in better than predicted profit

Question 18

Net cash Flow

Answer 18

Cash Inflows (income) - Cash outflows (expenditure)

Question 19

Closing Balance

Answer 19

Net Cash Flow + Opening Balance