Key Formulas For Test 20th Nov 2018 Flashcards
1
Q
PED
A
% change in quantity demanded / % change in price
2
Q
Total Revenue
A
P x Q
3
Q
Percentage change
A
New - old / old x 100
4
Q
Unit contribution
A
Selling price - Unit variable cost
5
Q
Break Even level of output
A
FC / unit contribution
6
Q
Margin of safety
A
Actual output - BEQ
7
Q
Break Even point in revenue
A
Break Even point in units x selling price
8
Q
Profit
A
Total Rev - Total costs
9
Q
Gross Profit
A
Revenue - Cost of Sales
10
Q
Operating profit
A
Gross profit - operating expenses
11
Q
Net profit
A
Operating profit - interest
12
Q
Profit Margin
A
Profit / revenue x 100
This is the same for all three profit types gross, operating, and net.
