formulas Flashcards
Sales revenue
number of units sold x unit price
Total costs
fixed costs+variable costs
Total variable costs
number of units sold x variable costs per unit
Profit
sales revenue - total costs
Total fixed costs
Total costs - Total variable costs
Unit costs
total cost divided by output
Break-even point
Fixed costs divided by contribution per unit
Contribution per unit
selling price per unit - variable cost per unit
Total contribution
contribution per unit x number of units sold
Profit 2
total contribution - fixed costs
Margin of safety
Actual output - break-even output
Profit 3
margin of safety x contribution per unit
Variance
Budget figure - actual figure
Net cash flow
total inflows - total outflows
Closing balance
opening balance + net cash flow
Gross profit
sales revenue - costs of sales
Costs of sales
sales revenue - gross profit
Operating profit
gross profit - expenses
profit for the year
operating profit +/- finance costs
Gross profit margin
(gross profit divided by sales revenue) x100
operating profit margin
(operating profit divided by sales revenue) x 100
Profit for the year margin
(Profit for the year divided sales revenue) x 100
current ratio
current assets divided by current liabilities :1
Acid test ratio
(current assets - stock) divided by current liabilities :1
Working capital
Current assets - current liabilites
productivity
output per period divided by number of employees
Capacity utilisation
(actual level of output divided by maximum possible output) x 100
