Business Equations Flashcards
(12 cards)
Revenue=
Revenue = Selling price X amount sold
Total costs =
Total costs = Fixed costs + total costs
Gross Profit =
Gross profit = Revenue - cost of Goods sold
Net Profit =
Net Profit = Gross profit - all other expenses
Breakeven =
Breakeven = fixed costs / contribution
Contribution =
Contribution = Selling price - variable costs
Percentage change =
(Difference / Initial amount) X 100
Net Cash flow =
Net cash flow = Cash inflows - Cash outflow
Closing balance =
Closing balance = Opening balance + Net cash flow
ARR =
ARR = average profit / initial investment
Average profit =
total net profit / Numbers of years of investment
Gross profit margin =
Net profit margin =
Gross profit margin = gross profits / sales revenue x 100
Net profit margin = net profits / sales revenue x 100
