Formulas Flashcards
1
Q
Margin of safety
A
Actual sales- break even sales
2
Q
Break-even formula
A
fixed costs/ sales price - variable costs
3
Q
Price Elasticity Demand
A
% change in quantity/ % change in price
4
Q
Income Elasticity Demand
A
% change in quantity/ % change in income
5
Q
Gross Profit
A
Revenue - Cost of Sales
6
Q
Gross Profit Margin
A
Gross Profit/ Revenue (x100)
7
Q
Operating Profit
A
Gross Profit - Expenses
8
Q
Operating Profit Margin
A
Operating Profit/ Revenue (x100)
9
Q
Net Profit
A
Operating Profit - Expenses
10
Q
Net Profit Margin
A
Net Profit/ Revenue (x100)
