Formulae/equations Flashcards
variation
sales in a specific time period - moving average sales
total revenue
TR
volume sold x average selling price
output x sppu
total variable costs
TVC
variable cost per unit x output
VCpu x output
total costs
fixed costs + total variable costs
FC + TVC
simple profit
Total revenue - total costs
TR - TC
total contribution
total revenue - total variable costs
contribution per unit x quantity sold
contribution per unit
selling price per unit - variable cost per unit
profit
total contribution - fixed costs
break even output
fixed costs divided by contribution per unit
margin of safety
current output - break even output
Gross profit
Revenue - Cost of sales
Operating profit
Gross profit - fixed overhead
Profit before tax
Operating profit - financing costs
Corporation tax
Charged on OP as % flat rate
Net profit
Profit before tax - tax
