Main business formulas Flashcards
1
Q
Break even
A
Total fixed costs/unit contribution
2
Q
Contribution per unit
A
Selling price - variable costs
3
Q
Gross profit
A
Sales revenue - cost of goods sold
4
Q
Net profit
A
Total revenue - total expenses
5
Q
Profit margin
A
Profit/revenue x 100
6
Q
Net current assets
A
Current assets - current liabilities
7
Q
Cost of goods sold
A
Beginning inventory + purchases and other costs - ending inventory
