3.5 - Analysing financial performance Flashcards
(8 cards)
1
Q
Contribution per unit definition
A
The amount each unit sold contributes towards FC of a business
2
Q
Contribution per unit formula
A
Selling price - Variable cost per unit
3
Q
Revenue formula
A
Selling price x No of units sold
4
Q
Total contribution formula
A
Contribution per unit x no of units sold
Revenue - Total VC
5
Q
Variable costs formula
A
Variable costs per unit x No of units sold
6
Q
Total costs formula
A
Variable costs + Fixed costs
7
Q
Formulas in relation to profitability
A
Gross profit margain = (Gross/Revenue) x 100
Profit from operations margain = (Operating profit/Revenue) x 100
–
Profit for the year margain = (Profit for the year/Revenue) x 100
8
Q
Break even output formula
A
Fixed costs/Contribution per unit
