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 (x3)
- Revenue = Selling price x Number of Units sold
- Revenue = Gross Profit + Costs of Sales
- Revenue = Profit + Cost of Sales
Profit / Loss
Profit / Loss = Revenue- Total Costs
Interest (on loans)
((Total repayment - Borrowed amount) ÷ Borrowed Amount) x 100
Net Cash Flow
Net Cash flow = Total Cash inflows - Total Cash Outflows in a given period
Opening balance in a cash flow forecast
Opening Balance = Closing balance of the previous period
Closing balance in a cash flow forecast
Closing balance = Opening balance + net cash flow balance
Total inflows in a cash flow forecast
Net cash flow + total cash outflows
Total outflows in a cash flow forecast
Total inflows - Net cash flow
Break even point from a break even chart
when: Total Revenue = Total Costs
Break even point in unit
Fixed Costs ÷ (sales price per unit - variable cost per unit)
Break even point in costs / revenue
Break even point in units x sales price
profit / loss from a break even chart
Total revenue - Total costs
Margin of safety
Actual sales - break even sales
Average rate of return
(Average annual profit ÷ cost of investment) x 100
Average annual profit
Total profit of the investment ÷ number of years
Cost of sales
Sales Revenue - Gross Profit
Gross profit
sales revenue − cost of sales
Gross profit Margin
(Gross profit ÷ sales revenue) x 100
Other operating expenses and interest
gross profit – net profit
Net profit
gross profit – other operating expenses and interest
Net profit margin
(net profit ÷ sales revenue) x 100
Market Share
(Sales of products ÷ total sales of the market) x 100
Percentage change
(Change ÷ Original) x 100
