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
Gross profit margin
Gross profit divided by sales revenue x100
Operating profit margin
Operating profit divided by sales revenue x100
Profit for year (net profit)margin
Net profit divided by sales revenue x100
net assets
non current assets + (current assets - current liabilities) - non current liabilities
working capital (net current assets)
current assets - current liabilities
total equity
share capital + retained profit
current ratio
current assets divided by current liabilities
acid test
current assets - stock divided by current liabilities
