Theme 2 - Equation Centric Flashcards
Sales Volume Formula
Sales revenue divided by unit price
Sales Revenue Formula
Selling price X Sales Volume
Average Variable Costs Formula
Total variable costs divide output
Average fixed costs
Total fixed cost divide output
Average total costs Formula
Total costs divided by output
Total contribution
Sales revenue minus Total Variable Costs
Gross Profit
Turnover - Cost of Sales
Operating profit
Gross profit - fixed costs
Profits For The Year (Net Profit)
Operating Profits - Tax & Interest
Statement Of Comprehensive Income
Revenue - cost of sales = Gross profit - other operating expenses = Operating Profits - taxes & interest = Profit for the year
Profit Margin
Profit / Turnover x 100
Gross Profit Margin
Gross Profit / Turnover x 100
Operating Profit Margin
Operating Profit / Turnover x 100
Profit For The Year margin
Net Profit / Turnover x 100
Net Assets
Total Assets - Total Liabilities
