Formulas Flashcards
Total costs
Total fixed costs + Total variable costs
Revenue
Price × quantity × number of units
Contribution per unit
Selling price - variable costs per unit
Total contribution
Contribution per unit × number of units sold
Break-even point (in units)
Fixed costs % (sales price - variable cost per unit)
Break-even point in costs
Break-even point in units × sales price
Months to break-even
Break-even units % units produced per month
Margin of safety (in units)
Actual or budgeted sales - break-even sales
Net cash flow
Cash inflows - cash outflows in a given period
Opening balance
Closing balance of the previous period
Closing balance
Opening balance + net cash flow
Gross profit
Sales revenue - cost of sales
Gross profit margin
Gross profit % revenue × 100
Net profit
Gross profit - other operating expenses and interest
Net profit margin
Profit % revenue × 100
