Unit 6 Part 1

Question 1

Average Rate of Return

Answer 1

Average annual profit divided by

initial investment x100

Question 2

Break even output

Answer 2

Total costs = Total revenue

Question 3

Net cash flow

Answer 3

Total cash inflows- Total cash outflows

Question 4

Closing balance cash flow

Answer 4

Opening balance + net cash flow

Question 5

Opening balance cash flow

Answer 5

Closing balance of the previous month

Question 6

Break even point

Answer 6

Fixed costs divided by

total sales revenue- cost to make product