Formulas

Question 1

Formula for revenue

Answer 1

Selling price x number of units sold

Question 2

Formula for fixed costs

Answer 2

Total costs - variable costs

Question 3

Formula for variable costs

Answer 3

variable cost per unit x number of units sold

Question 4

Formula for total costs

Answer 4

fixed costs + variable costs

Question 5

Formula for profit

Answer 5

Revenue - total costs

Question 6

Formula for contribution per unit

Answer 6

Selling price - variable cost per unit

Question 7

Formula for Break-Even-Point

Answer 7

Fixed costs / (selling price - variable costs)

Question 8

Formula for Margin of Safety

Answer 8

Level of output - Break even point

Question 9

Formula for Net Cash Flow

Answer 9

Cash inflows - Cash outflows

Question 10

Formula for Closing balance

Answer 10

Opening balance + net cash flow

Question 11

Formula for gross profit

Answer 11

Total revenue - cost of sales

Question 12

Formula for market share %

Answer 12

business sales
-‐—————————– x 100
total sales in market

Question 13

Formula for PED

Answer 13

percentage change in quantity demanded
————————————————————-‐—
percentage change in price

Question 14

Formula for YED

Answer 14

percentage change of income

Question 15

Formula for % change

Answer 15

change
———— x 100
original