formulas Flashcards
total costs
fixed costs + variable costs
variable costs
quantity produced x cost of 1 unit
revenue
price x quantity
break-even point in units
fixed costs/(sales price - variable costs)
break-even point in costs/revenue
break-even point in units x sales price
interest (on loans)
total repayment - borrowed amount/borrowed amount x 100
net cash flow
cash inflows (receipts) - cash outflows in a given period (payments)
opening balance
= closing balance of the previous period
closing balance
opening balance + net cash flow
profit/loss
total revenue - total costs
gross profit
sales revenue - cost of sales
gross profit margin (%)
gross profit/sales revenue x 100
net profit
gross profit - other operating expenses and interest
net profit margin (%)
net profit/sales revenue x 100
arr (%)
average annual profit (total profit/no. of years)/cost of investment x 100
