Formulas Flashcards
total costs
total costs = total fixed costs + total variable costs
total fixed costs
total fixed costs= total costs - total variable costs
total variable costs
total variable costs= total costs - total fixed costs
revenue
revenue= selling price per unit x quantity sold
profit/loss
profit/loss= revenue - total costs
average unit costs
average unit costs= total costs / output
net cash flow
net cash flow= total cash inflows - total cash outflows
opening balance
opening balance= closing balance of the previous period
closing balance
closing balance= opening balance + net cash flow
break-even point from a break-even chart
break-even point from a break-even chart: when total revenue = total costs
profit/loss from a break-even chart
profit/loss from a break-even chart= total revenue - total costs
margin of safety
margin of safety= actual or budgeted output - break-even point
average rate of return
average rate of return= average annual profit (total profit / no. of years) x 100 / cost of investment
gross profit
gross profit= sales revenue - cost of sales
gross profit margin
gross profit margin= gross profit / sales revenue x100
