Formulas Flashcards
Total costs
Total cost = total fixed costs + total variable costs
Revenue
Revenue = price x quantity
Break even point in units
Fixed costs / (sales price - variable costs)
Brek even points in cost
Break even point in costs = break even point in units x sales price
Margin of safety
Margin of safety = actual/budgeted sales - break even sales
Interest
Interest in % = (total repayment - borrowed amount / borrowed amount) x 100
Net cash flow
Net cash flow = cash inflows - cash outflows (in a given period)
Opening balance
Closing balance of previous period
Closing balance
Opening balance + net cash flow
Gross profit
Gross profit = sales revenue - cost of sales
Gross profit margin
Gross profit margin (%) = (gross profit/sales revenue) x 100
Net profit
Net profit = gross profit - other operating expenses and interest
Net profit margin
Net profit margin (%) = (net profit / sales revenue) x 100
Average rate of return
Average rate of return (%) = (average annual profit / cost of investment) x 100
Average annual profit
Average annual profit = total profit / no of years
