UNIT 5 Flashcards
1
Q
RETURN ON INVESTMENT
A
(OPERATING PROFIT X 100) / CAPITAL INVESTED
2
Q
TOTAL CONTRIBUTION
A
REVENUE - VARIABLE COSTS
3
Q
CONTRIBUTION PER UNIT
A
selling price of one unit of output - variable cost of producing that unit
OR
total contribution / total output
4
Q
BREAK-EVEN OUTPUT
A
fixed costs / (sp per unit - vc per unit)
OR
fixed costs / contribution per unit
5
Q
GROSS PROFIT MARGIN
A
(GROSS PROFIT X 100) / REVENUE
6
Q
OPERATING PROFIT MARGIN
A
(OPERATING PROFIT X 100) / REVENUE
7
Q
PROFIT FOR THE YEAR MARGIN
A
(PROFIT FOR THE YEAR X 100) / REVENUE
8
Q
MARGIN OF SAFETY
A
ACTUAL LEVEL OF OUTPUT - BREAK-EVEN LEVEL OF OUTPUT
