theme 2 formulas Flashcards
net cash flow
total inflows - total outflows
sales volume
total number of units sold over a period of time
sales revenue
number of units sold x unit price
total variable cost
number of units sold x variable cost per unit
total cost
fixed cost + variable cost
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit x number of units sold
break even
fixed costs/ contribution per unit
variance
actual - budget
gross profit
sales revenue minus cost of sales
operating profit
gross profit minus overheads
net profit
operating profit +/- finance costs
gross profit margin
(gross profit/sales revenue) x 100
operating profit margin
(operating profit/sales revenue) x 100
profit for the year (net profit) margin
(profit for the year/ sales revenue) x 100
