Equations Flashcards
(21 cards)
Total revenue
Price X Quantity
Profit
Total revenue — total cost
Margin of safety
Actual (or forecast) sales - Break-even output
Break- even output
Fixed costs / Contribution
Contribution per unit
Selling price per unit — variable cost per unit
Total contribution (2 equations)
. Total revenue — total variable cost
. Unit contribution X number of units sold
Total costs
Fixed costs + variable costs
Average cost
Total cost / output
Net cash flow
Total o cash inflows — total cash outflows
Closing balance calculations
Opening balance + net cash flow
Variance
Actual - Budgeted
Gross profit
Revenue - Cost of sales
Operating profit
Gross profit - operating expenses
Profit for the year
Operating profit - interest and exceptional cost
Gross profit margin
Gross profit / Revenue X 100%
Operating profit margin
Operating profit / Revenue X 100%
Profit for the year margin
Net profit before tax / Revenue X 100%
Assets
Capital + Liability
Current ratio
Current assets / current liabilities
Acid tests ratio
Current assets - inventories / Current liabilities
Working capital
Current assets - current liabilities
