Business equations Flashcards
(16 cards)
total costs
total fixed cost + total variable costs
total fixed costs
total costs - total variable costs
total variable
total costs -total fixed costs
revenue
sales price per unit x quantity sold
profit
revenue - total costs
interest (on loans) in %
total repayment - borrowed amount
————————— x 100
borrowed amount
margin of safety
actual or budgeted output - break even point
break even
fixed costs / sales price per unit - varible costs per unit
net cash flow
total cash inflows - total cash outflows
closing balance
opening balance + net cash flow
opening balance
closing balance of previous period
gross profit
sales revenue - cost of sales
gross profit margin
(gross profit/sales revenue) x 100
net profit
gross profit - operating expenses and interest
net profit margin
(net profit/sales revenue) x 100
average rate of return
average annual profit x (total profit/ no. of yrs)// cost of investment everything x 100
