Theme 2 Formulas Flashcards
Operating Profit Margin
(Operating Profit / Sales Revenue) * 100
Profit
Sales Revenue - Total Costs
Sales Revenue
Sale Price * Sales Volume
Sales Volume
Sales Revenue / Sale Price
Total Variable Costs
Sales Volume * Variable Cost per unit
Total Costs
Total Fixed Costs + Total Variable Costs
Contribution per unit
Sale Price - Variable Cost per unit
Total Contribution
Contribution per unit * Sale Volume
Break-even
Total Fixed Costs / Contribution per unit
Margin of Safety
Current Sales - Break-even point
Variance
Actual - Forecast
Gross Profit
Sales Revenue - Cost of Sales (direct costs)
Gross Profit Margin
(Gross Profit / Sales Revenue) * 100
Operating Profit
Gross Profit - Operating Expenses
Net Profit
Operating Profit - Interest
Net Profit Margin
(Net Profit / Sales Revenue) * 100
Closing Balance
Net Cash Flow + Opening Balance
Cash
Cash Inflow - Cash Outflow
Assets
Liabilities + Capital
Net Assets
Total Assets - Total Liabilities
Current Ratio
Current Assets / Current Liabilities
Acid Test Ratio
(Current Assets - Inventory) / Current Liabilities
Working Capital
Current Assets - Current Liabilities
Total Contribution
Total sales - Total variable costs
