Theme 2 Flashcards
1
Q
Revenue?
A
quantity sold x price
2
Q
Contribution?
A
Selling price per unit - variable cost per unit
3
Q
Break-even?
A
Fixed costs/ (selling price- variable cost per unit
Represent as a unit!
4
Q
Operating profit margin?
A
(Operating profit/ revenue) x100
5
Q
Net profit?
A
Operating profit - interest
6
Q
Gross profit margin?
A
Gross profit/ revenue
7
Q
Gross profit?
A
Total revenue- cost of goods sold
8
Q
Capacity utilisation?
A
(current output/ maximum possible output) x100
9
Q
What is operating profit?
A
Gross profit - operating expenses
