Theme 2

Question 1

Sales volume

Answer 1

Revenue / Price

Question 2

Sales revenue

Answer 2

Price x Quantity sold

Question 3

Total costs

Answer 3

Fixed costs + Variable costs

Question 4

Breakeven

Answer 4

Fixed costs / Contribution per unit

Question 5

Contribution

Answer 5

Selling price - Variable cost per unit

Question 6

Total contribution

Answer 6

Contribution per unit x Quantity sold

Question 7

Margin of safety

Answer 7

Total output - Break-even level of output

Question 8

Gross profit

Answer 8

Sales revenue - Cost of Sales

Question 9

Gross profit margin

Answer 9

Gross profit / Revenue x100

Question 10

Operating profit

Answer 10

Gross profit - Expenses

Question 11

Operating profit margin

Answer 11

Operating profit / Revenue x100

Question 12

Working capital

Answer 12

Current assets - Current liabilities

Question 13

Productivity

Answer 13

Output per time period / Input per time period

Question 14

Labour productivity

Answer 14

Output per time period / No. workers or hours worked

Question 15

Total variable costs

Answer 15

Total costs - Fixed costs
OR
Variable costs per unit x Quantity sold

Question 16

Average variable costs

Answer 16

Variable costs / Output

Question 17

Profit

Answer 17

Total revenue - Total costs

Question 18

Net profit

Answer 18

Operating profit - Interest and tax

Question 19

Net profit margin

Answer 19

Net profit / Revenue x100

Question 20

Current ratio

Answer 20

Current assets / Current liabilities

Question 21

Acid test ratio

Answer 21

Current assets - inventory / Current liabilities

Question 22

Capital productivity

Answer 22

Output per time period / No. of machines

Question 23

Capacity utilisation

Answer 23

Actual output / Maximum output x100