unit 5 Flashcards
1
Q
ROI%
A
return from investment / cost of investment X 100
2
Q
gross profit=
A
revenue - cost of sales
3
Q
operating profit=
A
gross profit - operating expenses
4
Q
net profit=
A
total profits - net finance costs - tax
5
Q
gross profit margin
A
gross profit / revenue X 100
6
Q
operating profit margin
A
operating profit / revenue X 100
7
Q
net profit margin (profit for the year)
A
net profit / revenue X 100
8
Q
total contribution
A
total revenue - total variable costs
9
Q
contribution per unit
A
selling price - variable cost per unit
10
Q
break even output
A
fixed costs / contribution per unit
11
Q
what does adverse mean (variance analysis)
A
bad ( worse off that budgeted)
12
Q
margin of safety
A
actual level of output - break even output
