Formulas Flashcards
1
Q
Break-even point
A
Fixed costs/ (selling price - variable costs)
2
Q
Average rate of return
A
Average profit/ initial investment x100
3
Q
Average profit
A
Total net profit/ number of years of investment
4
Q
Gross profit margin
A
Gross profit/ sales revenue x100
5
Q
Net profit margin
A
Net profit/ sales revenue x100
6
Q
Gross profit
A
sales revenue − cost of sales
7
Q
Net profit
A
gross profit − other operating expenses and interest
