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 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 ÷ Sales revenue) x 100
Operating profit margin
(Operating profit/sales revenue) x 100
Net profit margin
(Profit for the year/sales revenue) x 100
