Theme 2 Equations Flashcards
1
Q
Sales volume =
A
Sales revenue / Price
2
Q
Sales revenue =
A
Price x Quantity
3
Q
Total costs =
A
Fixed costs + Variable costs
4
Q
Total variable =
A
Total costs - Fixed costs
5
Q
Average variable =
A
Variable costs / Output
6
Q
Profit =
A
Total revenue - Total costs
7
Q
Net profit =
A
Operating profit - interest/tax
8
Q
NP margin=
A
Net profit / sales revenue x 100
9
Q
Current ratio =
A
Current assets / current liabilities
10
Q
Acid test ratio =
A
Current assets - stock / current liabilities
11
Q
Capital productivity =
A
Output per time period / no. Machines
12
Q
Capital utilisation =
A
Actual output/ maximum output x 100
13
Q
Labour productivity =
A
Output per time period/ no. Workers or hours worked
14
Q
Productivity =
A
Output per time period / Input per time period
15
Q
Working capital =
A
Current assets - current liabilities
