revenue and equation Flashcards
1
Q
sales rev
A
price * quantity
2
Q
total cost
A
fix + variable
3
Q
total variable costs
A
variable cost per unit * number produced /output
4
Q
break even
A
fixed cost / price - variable cost
5
Q
contribution
A
price - variable costs
6
Q
margin of safety
A
actual sales -break even level of sales
7
Q
profit
A
revenue - costs
8
Q
profit
A
margin of safety * break even level of sales
9
Q
gross profit
A
revenue - cost of sales
10
Q
net profit
A
gross profit - expenses
11
Q
gross profit margin
A
gross profit / sales * 100
12
Q
net profit margin
A
net profit / sales *100
13
Q
ARR
A
Average annual profit / initial investment
* 100
14
Q
net cash flow
A
total inflow - outflow
15
Q
closing balance
A
net cash flow + opening balance
