Key Formulas Flashcards
1
Q
Unit contribution
A
P - UVC
2
Q
Working capital
A
Current assets - current liabilities
3
Q
Contribution per unit
A
Selling price of 1 item - variable costs of 1 item
4
Q
Margin of safety
A
Q- BEQ
5
Q
Total Contribution
A
TR - TFC
6
Q
Operating profit
A
Gross profit - operating expenses
7
Q
Market growth
A
Change in market size over period / original market size x 100
8
Q
Total Costs
A
FC + VC
9
Q
Acid test ratio
A
Current assets-inventories / current liabilities
10
Q
Net profit
A
Operating profit- interest
11
Q
Current Ratio
A
Current assets / current liabilities
12
Q
Net profit margin
A
Net profit / revenue x 100
13
Q
PED
A
Percentage change in quantity demanded / percentage change in price
14
Q
Market share
A
Sales of firm A / total sales in the market or industry x100
15
Q
BER
A
BEQ x T
