Theme 2 calculations Flashcards
1
Q
Current Ratio
A
current assets / current liabilities
2
Q
Acid test ratio
A
(current assets - inventories) / current liabilities
3
Q
Break Even Output
A
Fixed Costs / (selling price per unit - variable cost per unit)
4
Q
Contribution Per Unit
A
Selling price - variable cost per unit
5
Q
Total Contribution
A
Contribution per unit x quantity sold
6
Q
Margin of Safety
A
sales - break-even point
7
Q
Gross Profit Margin
A
gross profit / sales revenue x 100
8
Q
Operating Profit Margin
A
Operating Profit / Sales Revenue x 100
9
Q
Net Profit Margin
A
Profit for the year / sales revenue x 100
10
Q
Capacity Utilisation
A
current output / maximum possible output x 100
