U3 Calculations

Question 1

Total sales revenue

Answer 1

Selling price x number sold

Question 2

Variable cost per unit

Answer 2

All variable costs added together per unit

Question 3

Total variable costs

Answer 3

Variable cost per unit x number sold

Question 4

Total fixed costs

Answer 4

All fixed costs added together

Question 5

Total costs

Answer 5

Total fixed costs + total variable costs

Question 6

Profit

Answer 6

Total sales revenue - total costs

Question 7

Contribution per unit

Answer 7

selling price per unit - variable cost per unit

Question 8

Total contribution

Answer 8

Contribution per unit x number sold

Question 9

Break even

Answer 9

Fixed costs/contribution

Question 10

Margin of safety

Answer 10

Actual sales - break even point sales

Question 11

Cost of sales per unit

Answer 11

All variable costs added together per unit

Question 12

Total cost of sales

Answer 12

Variable costs per unit x number sold

Question 13

Gross profit

Answer 13

total revenue - total cost of sales

Question 14

Total expenses

Answer 14

All expenses (fixed costs) added together

Question 15

Net profit before tax

Answer 15

Gross profit - total expenses

Question 16

Net profit after tax and expenses

Answer 16

Net profit before tax - tax + additional income

Question 17

Straight line method

Answer 17

(Original cost of asset - expected residual value) / expected useful life of asset (years)

Question 18

Reducing balance method

Answer 18

Calculate percentage decrease - current value

Question 19

Total fixed assets (non current assets)

Answer 19

All fixed assets added together

Question 20

Total current assets

Answer 20

All current assets added together

Question 21

Total current liabilities

Answer 21

All current liabilities added together

Question 22

Working capital

Answer 22

current assets - current liabilities

Question 23

Net current assets

Answer 23

Total fixed assets + working capital

Question 24

Long term liabilities

Answer 24

All long term liabilities added together

Question 25

Net assets

Answer 25

Net current assets - long term liabilities

Question 26

Equity

Answer 26

Share capital + reserves + retained profit

Question 27

Gross profit margin

Answer 27

Gross profit / total revenue x 100

Question 28

Net profit margin

Answer 28

Net profit / total revenue x 100

Question 29

Mark up

Answer 29

Gross profit / cost of sales x 100

Question 30

Profit margin

Answer 30

Profit / total revenue x 100

Question 31

Return on capital employed (ROCE)

Answer 31

Profit / capital employed x 100

Question 32

Profit for year

Answer 32

Total revenue - total cost of sales - total expenses

Question 33

Capital employed

Answer 33

Total assets - current liabilities or non-current liabilities + total equity

Question 34

Current ratio

Answer 34

Current assets / current liabilities

Question 35

Liquid capital ratio

Answer 35

(Current assets - inventory) / current liabilities

Question 36

Trade receivable days

Answer 36

Trade receivables / credit sales x 365

Question 37

Trade payable days

Answer 37

Trade payables / credit purchases x 365

Question 38

Inventory turnover

Answer 38

Average inventory / cost of sales x 365