Theme 2 Formulas Flashcards
1
Q
Operating Profit Margin
A
(Operating Profit / Sales Revenue) * 100
2
Q
Profit
A
Sales Revenue - Total Costs
3
Q
Sales Revenue
A
Sale Price * Sales Volume
4
Q
Sales Volume
A
Sales Revenue / Sale Price
5
Q
Total Variable Costs
A
Sales Volume * Variable Cost per unit
6
Q
Total Costs
A
Total Fixed Costs + Total Variable Costs
7
Q
Contribution per unit
A
Sale Price - Variable Cost per unit
8
Q
Total Contribution
A
Contribution per unit * Sale Volume
9
Q
Break-even
A
Total Fixed Costs / Contribution per unit
10
Q
Margin of Safety
A
Current Sales - Break-even point
11
Q
Variance
A
Actual - Forecast
12
Q
Gross Profit
A
Sales Revenue - Cost of Sales (direct costs)
13
Q
Gross Profit Margin
A
(Gross Profit / Sales Revenue) * 100
14
Q
Operating Profit
A
Gross Profit - Operating Expenses
15
Q
Net Profit
A
Operating Profit - Interest
