Theme 2 - Equations Flashcards
How do you calculate sales volume?
Sales revenue / price
How do you calculate sales revenue?
Price x quantity
How do you calculate total costs?
Fixed costs + variable costs.
How do you calculate total variable cost?
Total cost - fixed costs (or) average variable x output
How do you calculate break-even?
Total fixed costs / contribution per unit
How do you calculate contribution?
Selling price - variable cost per unit
How do you calculate total contribution?
Contribution per unit x number of units sold
How do you calculate margin of safety?
Total output - break-even point
How do you calculate gross profit?
Sales revenue - cost of sales
How do you calculate GP margin?
Gross profit / sales revenue x 100
How do you calculate operating profit?
Gross profit - expenses
How do you calculate OP margin?
Operating profit / sales revenue x 100
How do you calculate working capital?
Current assets - current liabilities
How do you calculate productivity?
Output per time period / input per time period
How do you calculate labour productivity?
Output per time period / number of workers/hours worked.
How do you calculate average variable?
Variable costs / output
How do you calculate profit?
Total revenue - total costs
How do you calculate net profit?
Operating profit - interest/tax
How do you calculate Net Profit Margin?
Net profit / sales revenue x 100
How do you calculate current ratio?
Current assets / current liabilities
How do you calculate acid test ratio?
Current assets - stock / current liabilities
How do you calculate capital productivity?
Output per time period / number of machines
How do you calculate capacity utilisation?
Actual output / maximum output x 100
