Paper 2 Formulas Flashcards
1
Q
Margin of Safety
A
Actual output- Breakeven output
2
Q
Breakeven units
A
Fixed costs
—————
(SPPU-VCPU)
3
Q
Profit (using contribution)
A
Total contribution- fixed costs
4
Q
Contribution per unit
A
SPPU- VCPU
5
Q
Total Contribution
A
CPU x quantity sold
6
Q
Profit
A
Total revenue - total costs
7
Q
Total costs
A
Fixed costs + variable costs
8
Q
Total revenue
A
SPPU x units sold
9
Q
Closing balance
A
Opening balance + net cash flow
10
Q
Net cash flow
A
Total inflows - total outflows
11
Q
Total variable costs
A
VCPU x output
12
Q
Current Ratio
A
Current Assets
———————
Current Liabilities
13
Q
Gross Profit
A
Revenue - cost of sales
14
Q
Operating Profit
A
Gross Profit - fixed overheads (fixed costs)
15
Q
Profit before Tax
A
Operating Profit - financing costs
