Theme 2

Question 1

Break even

Answer 1

Total fixed costs divided by contribution per unit

Question 2

Contribution

Answer 2

Selling price - Variable cost per unit

Question 3

Total contribution

Answer 3

Contribution per unit x Number of units sold

Question 4

Margin of safety

Answer 4

Total output - Break even point

Question 5

Gross profit

Answer 5

Sales revenue - Cost of sale

Question 6

Gross profit margin

Answer 6

Gross profit divided by Sales revenue x100

Question 7

Operating profit

Answer 7

Gross profit - Expenses

Question 8

Operating profit margin

Answer 8

Operating profit divided by Sales revenue x100

Question 9

Working capital

Answer 9

Current assets - Current liabilities

Question 10

Productivity

Answer 10

Output per time period divided by Input per time period

Question 11

Sales volume

Answer 11

Sales revenue divided by Price

Question 12

Sales revenue

Answer 12

Price x Quantity

Question 13

Total costs

Answer 13

Fixed costs + Variable costs

Question 14

Total variable cost (1)

Answer 14

Total costs - Fixed costs

Question 15

Total variable costs (2)

Answer 15

Average variable cost x Output

Question 16

Average variable costs

Answer 16

Variable costs divided by Output

Question 17

Profit

Answer 17

Total revenue - Total costs

Question 18

Net profit

Answer 18

Operating profit - Interest

Question 19

Net profit margin

Answer 19

Net profit divided by sales revenue x100

Question 20

Current ratio

Answer 20

Current assets divided by Current liabilities

Question 21

Acid test ratio

Answer 21

(Current assets - Stock) divided by Current Liabilities

Question 22

Capital productivity

Answer 22

Output per time period divided by number of machines

Question 23

Capacity utilisation

Answer 23

Actual output divided by Maximum output x100

Question 24

Labour productivity

Answer 24

Output per time period divided by number of workers who have worked