formulas- theme 2 Flashcards
sales revenue=
selling price
sales revenue =
selling price pu X No. units sold
variable costs=
variable cost per unit x No. units produced
total costs=
fixed costs + variable costs
profit=
in revenue, costs and sales
revenue - total costs
net cash flow=
inflows-outflows
closing balance=
opening balance + net cash flow
breakeven=
total costs = total revenue
margin of safety=
current output - breakeven output
breakeven using contribution=
contribution
contribution=
selling price per unit - variable costs per unit
profit=
in breakeven 1
total contribution - fixed costs
profit=
in breakeven 2
margin of safety x contribution per unit
gross profit=
revenue - cost of sales
operating profit=
gross profit - other operating expenses
profit for the year=
net profit
operating profit - interest & exceptional items
gross profit margin=
gross profit
—————– x 100
revenue
operating profit margin=
operating profit
———————– X 100
revenue
profit for the year=
net profit margin
profit for the year(net profit)
——————————– X 100
revenue
net current assets=
working capital
current assets - current liabilities
net assets=
non current assets + net current assets - no current liabilities
total equity=
share capital + retained profit + any other reserves
assets employed=
non current assets + net current assets
capital employed=
non current liabilities + total equity
current ratio=
current liabilities
acid test ratio=
current liabilities
labour productivity=
average No. employees (per period)
unit costs=
output per period
capacity utilisation=
maximum possible output
