FORMULAS Flashcards
1
Q
Gross Profit
A
Gross profit = revenue - cost of sales
2
Q
Gross Margin
A
Gross margin (%) = gross profit / revenue
3
Q
Revenue
A
Revenue = average selling price x quantity sold
4
Q
Operating profit
A
Operating profit = revenue - total costs
Operating profit = gross profit - India¡rect costs
5
Q
Break-even output
A
Fixed costs / Contribution per unit
6
Q
Contribution per unit
A
Selling price – variable costs per unit
