Theme 2 Flashcards
net cash flow
total inflows - total outflows
sales volume
total number of units sold over a period of time
sales revenue
number of units sold X unit price
total variable costs
number of units sold X variable cost per unit
total fixed costs
fixed costs + variable costs
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit X number of units sold
break even
fixed costs
——————
contribution per unit
variance
actual - budget
gross profit
sales revenue - cost of sales
operating profit
gross profit - overheads
net profit
operating profit +/- finance costs
gross profit margin
gross profit
——————- x100
sales revenue
operating profit margin
operating profit
————————— x100
sales revenue
profit for the year (net profit) margin
profit for the year
—————————— x100
sales revenue
