Equations Flashcards
(20 cards)
Equation of sales revenue
Number of units sold x price/ profit + total costs
Total cost
Fixed costs add variable costs
Profit
Sales revenue - total costs
Break even
Fixed cost / contribution (selling price - variable costs )
Margin of safety
Actual sales - variable costs
Profit variance
Actual (profit/loss) - budgeted (profit loss )
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit - overhead costs
Net profit
Operating profit - tax interest
Gross profit margin
Gp / revenue x 100
Net profit margin
Np /revenue X 100
Operating profit margin
Op l revenue X 100
Net current assets
Current assets - current liabilities
Net assets
(Non current assets + net current assets) - non current liabilities
Current ratio
Current assets/ current liabilities
Acid test ratio
Current assets - inventory / current liabilities
Working capital
Current’ assets - current liabilities
Productivity
Total output(in a time period)/number of employees
Unit cost
Total cost /total output
Contribution
Selling price - variable costs
