paper 2 formulas Flashcards
total revenue £
sales price x quantity
total variable costs £
total variable costs + total fixed costs
total costs £
total variable costs + total fixed costs
contribution per unit £
sales price-variable cost per unit
breakeven output (units)
total fixed costs/ contribution per unit
total contribution £
contribution per unit x quantity
margin of safety (units)
actual output-breakeven output
profit £
total revenue - total costs or total contribution - total fixed costs or margin of safety x contribution per unit
variance £
actual figures-budgeted figures
if budgeted better than actual= favourable
if not= adverse
(opposite of talking about costs)
profit margin %
profit/revenue x100
gross profit £
revenue- cost of sales
operating profit £
revenue-cost of sales and operating expenses
or
gross profit-operating expenses
current ratio (:1)
current assets/current liabilities :1
acid test ratio (:1)
current assets/current liabilities :1
capacity utilisation %
actual output/maximum possible output x100
