Formulae Flashcards
Total costs
Total costs= Total fixed costs + Total variable costs
Variable costs
Variable costs= Cost of one unit X Quantity produced
Revenue
Revenue= Price X Quantity
Break-even point in units
Break-even point in units=fixed costs divided by (sales price-variable cost)
Break-even point in costs/ revenue
Break-even point in costs/revenue= Break-even point in units X sales price
Margin of safety
Margin of safety= actual or budgeted sales- Break-even sales
Interest (on loans) in %
Interest= total repayment- borrowed amount divided by borrowed amount X 100
Net cash flow
Net cash flow= Cash inflows (receipts) - cash outflows in a given period (payments)
Opening balance
Opening balance= closing balance of the previous period
Closing balance
Closing balance= Opening balance + Net cash flow
Profit
Profit/loss= Total revenue- Total costs
Gross Profit
Gross profit= sales revenue- cost of sales
Gross profit margin
Gross profit margin (%)= Gross Profit divided by sales revenue X 100
Net profit
Net profit= Gross profit- other operating expenses and interest
Net profit margin
Net profit margin (%)= Net profit divided by sales revenue X 100
