Formulas Flashcards
1
Q
What is the formula for calculating total contribution ?
A
Total revenue - total variable costs
2
Q
How do you calculate the contribution per unit?
A
Selling price per unit - variable cost per unit
3
Q
Gearing ratio formula?
A
NLC/CE (sharholder funds+NCL)x100
4
Q
Acid test ratio formula
A
current assets - stock / current liabilities
5
Q
Current ratio formula
A
current assets/current liabilities
6
Q
ROCE (return on capital employed) formula
A
net profit / CE(shareholder funds + NCL) x100
7
Q
Depreciation formula
A
Historical cost - residual value/usefulness life of asset
8
Q
Working capital formula
A
current assets - current liabilities
9
Q
Capital employed formula
A
shareholders funds + non-current liabilities
