Chapter three formulas Flashcards
1
Q
profit
A
Revenue - total cost
2
Q
revenue
A
price x quantity
3
Q
total costs
A
variable costs + fixed costs
4
Q
variable costs
A
unit cost x output
5
Q
net cash flow
A
inflows - outflows
6
Q
closing balance
A
net cash flow + opening balance
7
Q
break even
A
sale price per unit - variable cost per unit
8
Q
Gross profit
A
revenue - cost of sales
9
Q
operating profit
A
gross profit - expenses
10
Q
gross profit margin
A
gross profit
—————– x 100
revenue
11
Q
operating profit margin
A
operating profit
———————- X 100
Revenue
12
Q
mark up
A
profit per item
——————— X 100
cost per item
13
Q
current ratio
A
current liabilities
14
Q
acid test ratio
A
current liabilities
15
Q
ROCE (return on capital employed )
A
operating profit
———————— X 100
capital employed
