key calculations Flashcards
1
Q
how do you work out revenue ?
A
price x quantity sold
2
Q
how do you work out profit?
A
profit = revenue - total costs
3
Q
how do you work out total costs?
A
fixed costs + variable costs
4
Q
how do you work out net cash flow?
A
cash inflow - cash outflow
5
Q
how do you work out gross profit?
A
sales revenue - cost of sales
6
Q
how do you work out net profit?
A
gross profit - overhead ( total costs )
7
Q
how do you work out TOTAL variable costs
A
variable cost per unit x total number of units produced
8
Q
how do you work out ARR ( average rate of return )
A
average annual profit / initial investment = x 100
9
Q
A
10
Q
A
