Business Equations Flashcards

1
Q

Gross profit

A

Revenue - cost of sales

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2
Q

Net profit

A

Gross profit - operating costs

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3
Q

Break even output

A

When total costs = total revenue

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4
Q

Gross profit margin

A

Gross profit / sales revenue x 100

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5
Q

Net profit margin

A

Net profit / sales revenue x 100

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6
Q

Net cash flow

A

Total cash inflows - total cash outflows

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7
Q

Revenue

A

Selling price x amount of sales

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8
Q
A
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