Theme 2 Flashcards
Breakeven
Total fixed costs / contribution per unit
Contribution
Selling price - variable cost per unit
Total contribution
Contribution per unit x number units sold
Margin of safety
Total output - breakeven point
Gross profit
Sales revenue- cost of sale
Gross profit margin
(Gross profit/ sales revenue) x 100
Operating profit
Gross profit - expenses
Operating profit margin
(Operating profit / sales revenue) x100
Productivity
Output per time period / input per time period
Labour productivity
Output per time period / (No. Workers / Hours worked )
Sales volume
Sales revenues / price
Sales revenue
Price x quantity
Total costs
Fixed costs + variable costs
Total variable
Total costs - fixed costs
Total variable
Average variable x output