Formulas Flashcards
1
Q
Q
A
Sales Quantity
2
Q
P
A
Sales Price per product
3
Q
c
A
variable costs per product
4
Q
P-c
A
Contribution margin per product
5
Q
F
A
Fixed costs
6
Q
Revenue
A
P*Q
7
Q
COGS
A
Q*c
8
Q
Gross Margin
A
Q*(P-c)
9
Q
Operating Income (EBIT)
A
Q*(P-c) - F
10
Q
Q*
A
Break-even quantity
11
Q
Q*
A
F/(P-c)
12
Q
Safety margin
A
(Sales level - BEP)/(Current sales level) * 100%
13
Q
Operating Leverage
A
(Q(P-c)) / (Q(P-c)-F)
Shows the level of influence variable or fixed costs have on your revenue.
High leverage: more fixed costs. revenue volatile
Low leverage: vice versa
For every 1% of sales increase, 1 * OL% of EBIT increase
14
Q
Total assets
A
equity + liabilities
15
Q
Return on Equity
A
Net Profit / Average Equity
Norm : > 5%
