3.5 EQUATIONS Flashcards
(10 cards)
1
Q
Profit equation
A
Revenue - Costs
2
Q
Cashflow equation
A
Total cash inflow - Total cash outflow
3
Q
Gross Profit equation
A
Revenue - Cost of sales
4
Q
Gross Profit Margin equation
A
(Gross profit / sales revenue) x 100
5
Q
Operating Profit Margin equation
A
(Operating profit / revenue) x 100
6
Q
Net Profit Margin equation
A
(Net profit before tax / sales) x100
7
Q
Contribution equation
A
Total sales - Total variable costs
8
Q
Per Unit Contribution equation
A
Selling price per unit - Variable costs per unit
9
Q
Break Even Output equation
A
Fixed costs / contribution per unit
10
Q
Margin Of Safety equation
A
Actual output - breakeven output
