Formulae Flashcards
1
Q
Sales revenue =
A
Selling price x quantity sold
2
Q
total variable costs =
A
Variable cost per unit x number of units
3
Q
Variable cost per unit =
A
Total variable costs/number of units
4
Q
Total costs =
A
Total fixed costs + total variable costs
5
Q
Contribution per unit =
A
Selling price - variable cost per unit
6
Q
Total contribution =
A
Contribution per unit x number of units
7
Q
Break even =
A
Fixed costs/contribution per unit
8
Q
Margin of safety =
A
Actual output - break even output
9
Q
What are the three ways of finding profit?
A
1) sales revenue - total costs
2) total contribution - fixed costs
3) margin of safety x contribution per unit
10
Q
Net cash flow =
A
Total inflow - total outflow
11
Q
Closing balance =
A
Opening balance + net cash Flow
12
Q
Price =
A
Unit cost + (mark up x unit cost)
