theme 2 formulas Flashcards
sales volume
sales revenue / price
sales revenue
price X quantity
total costs
fixed costs + variable costs
total variable costs
total costs - total fixed costs
total variable costs 2
variable cost per unit X quantity
average variable cost
variable costs / ouput
profit
revenue - total costs
net profit
operating profit - interest
net profit margin
net profit / sales revenue X100
gross profit
sales revenue - cost of sales
gross profit margin
gross profit / sales revenue X100
cost of sales
sales revenue - gross profit
operating profit
gross profit - expenses
operating profit margin
operating profit / sales revenue X100
break even
total fixed costs / contribution per unit
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit X number of units sold
margin of safety
actual output - break even output
working capital
current assets - current liabilities
productivity
output per time period / input per time period
current ratio
current assets / current liabilities
acid test ratio
( current assets - inventory ) / current liabilities
capital productivity
output per time period / number of machines
capacity utilisation
actual output / maximum output X100
labour productivity
output per time period / no of workers or hours worked
net cash flow
cash inflow - cash outflow
opening balance
closing balance from previous period
closing balance
opening balance + net cash flow
break even revenue
break even in units X selling price
variance
actual - budgeted
price index
change / original X100
Change foreign currency into £
divide foreign currency by foreign currency
Change £ into foreign currency
Multiply £ by currency
Re order level
Amount used during lead time + buffer stock
Profit variance
Actual profit - budgeted profit
