Equations Flashcards
(22 cards)
How do you calculate Total Cost
Total costs
Total costs = total fixed costs + total variable costs
How do you calculate Total fixed costs
Total fixed costs
Total fixed costs = total costs - total variable costs
How you calculate Total variable costs
Total variable costs
Total variable costs = total costs - total fixed costs
How you calculate revenue
Revenue
Revenue = selling price per unit × quantity sold
How you calculate Profit/Loss
Profit/loss = revenue – total costs
How you calculate Average unit costs
Average unit costs =
total costs/output
How you calculate Net cash flow
Net cash flow = total cash inflows – total cash outflows in a given period
How do you calaculate
Opening and closing balances
Opening and closing balances
Opening balance = closing balance of the previous period
Closing balance = opening balance + net cash flow
How do you calculate
Break-even point from a break-even chart
Break-even point from a break-even chart
when total revenue = total costs
How do you calculate
Profit/loss from a break-even chart
Profit/loss from a break-even chart
total revenue - total costs
How do you calculate Margin of safety
Margin of safety
actual or budgeted output – break-even point
How do you calculate Average rate of return
How to calculate Gross profit
How to calculate Gross profit margin
Gross profit margin (%) =
gross profit
———————— x100
sales revenue
How to calculate Operating profit
Operating profit = gross profit − overheads
How to calculate Net profit
Net profit = gross profit − overheads, tax and interest
How to calculate Net Profit Margin
Net profit margin (%) =
net profit
—————— x100
sales revenue
How to calculate Net current assets
Net current assets = total current assets – total current liabilities
How to calculate Net assets
Net assets = non-current assets + net current assets – non-current liabilities
How to calculate Total equity
Total equity = value of net assets
Market share
Market share =
sales of one product or brand or business
————————————————————- X100
total sales of market as a whole
Market size
Market size =
the total volume of sales of a product or the total value of sales of a product
