Unit 2 Formulas Flashcards
Sales revenue
Price X quaint it y of output
Profit
Total revenue - total costs
Total costs
Fixed costs + variable costs
Total variable costs
Variable cost per unit X output
Average costs/unit costs
Total cost
——————-
Output
Break even output
Fixed costs
————————————————-
(Sales price per unit – Variable costs per unit)
Contribution per unit
Selling price - variable cost
Total contribution
(Total revenue - total variable unit contribution)
X number of units sold
Profit
Total contribution - fixed costs
Net cash flow
Total cash inflow - total cash outflow
Closing balance
Net cash flow + opening balance
Gross profit
Revenue - cost of sales
Revenue or turnover
Price X quantity of sales
Gross profit margin
Gross profit
—————— X 100
Revenue
Net profit
Operating profit - finance cost
Finance cost
Interest paid on loans
Current ratio
Current assets
———————-
Current liabilities
Acid test ratios
Current assets - inventories
—————————————-
Current liabilities
total assets
Non current assets + current liabilities
Net assets
Total assets - total liabilities
Total equity
Share capital + money owed to shareholders
Capacity utilisation
Current output
———————— —————X 100
Maximum possible output
