Formulas Flashcards
1
Q
Break even formula
A
Fixed costs/contribution
2
Q
Margin of safety
A
Actual sales-break even sales
3
Q
Contribution
A
Selling price-variable cost per unit
4
Q
Net profit margin
A
Net profit/revenue*100
5
Q
Gross profit margin
A
Gross profit/total revenue*100
6
Q
Working capital
A
Current assets- current liabilities
7
Q
Commission
A
Sales*commission rate/100
8
Q
Average Rate of Return
A
Average annual profit/ initial investment *100
