Unit 6 Equations Flashcards
GROSS PROFIT
Sales revenue - cost of sales
GROSS PROFIT MARGIN
Gross profit/ total revenue x 100 (expressed as a %)
NET PROFIT
Gross profit - overheads
NET PROFIT MARGIN
Net profit/ total revenue x 100 (expressed as a %)
NET CASH FLOW
Cash inflows- cash outflows
CLOSING BALANCE
Opening balance + net cash flow
SALES REVENUE
Selling price per unit (SPPU) x quantity sold (Q)
PROFIT
Total revenue - costs
TOTAL COSTS
Total fixed costs + total variable costs
CONTRIBUTION PER UNIT
Selling price per unit (SPPU) - variable costs per unit (VCPU)
TOTAL VARIABLE COSTS
Variable costs per unit (VCPU) x quantity (Q)
BREAK-EVEN
Output level where total revenue = total costs , where total profit/loss = 0
MARGIN OF SAFETY
Actual output - breakeven output
REVENUE
Unit price x Quantity sold
GROSS PROFIT
Sales revenue - Cost of Goods sold
