Business calculations Flashcards
theme 2
What are cash flow calculations?
Closing balance = opening balance + net cash flow
Net cash flow = cash inflows - cash outflows
What is sales revenue calculation?
sales revenue = selling price x sales volume
What is sales volume calculations?
Sales volume = sales revenue/ selling price
How do u work out variable costs?
Total variable costs = average variable cost X quantity produced
How do u work out total costs?
Total costs = fixed costs + variable cost
How do u work out profit ?
Profit = total revenue - total costys
How do u work out contribution per unit?
Contribution per unit = selling price - variable cost per unit
How do u calculate the break even point?
Break even point = total fixed costs / contribution per unit
How do u work out the margin of saftey?
Margin of saftey = actual output - break even output
What is percentage change in profit calculation?
Percentage change in profit = current years profit- previous years profit / previous years profit X 100
How do u work out operating profit?
Operating profit = gross profit - other operating costs
How do u work out gross profit?
Gross profit = total revenue - cost of sales
How do u work out net profit?
Net profit = operating profit - interest
How do u work out gross profit margin?
Gross profit margin = gross profit / revenue x 100
How do u work out operational profit margin?
Operating profit = operating profit / revenue x 100
