Equations

Question 1

Total costs

Answer 1

Fixed + variable

Question 2

Variable costs

Answer 2

Cost of one unit x quantity produced

Question 3

Revenue

Answer 3

Price x quality

Question 4

Break even

Answer 4

Fixed costs
————————————-
Sales price- variable cost

Question 5

Break even point in costs

Answer 5

Revenue=Break even points in units x sales price

Question 6

Margin of safety

Answer 6

Actual or budgeted sales- break even sales

Question 7

Interest

Answer 7

Total repayment- borrowed amount
—————————————-
Borrowed amount
X100

Question 8

Net cash flow

Answer 8

Cash inflows- cash outflows in a given period

Question 9

Opening balances

Answer 9

Closing balance of the previous period

Question 10

Closing balance

Answer 10

Opening balance + net cash flow

Question 11

Profit

Answer 11

Total revenue- total costs

Question 12

Gross profit

Answer 12

Sales revenue - Cost of sales

Question 13

Gross profit margin

Answer 13

Gross profit
——————-
Sales revenue
X100

Question 14

Net profit

Answer 14

Gross profit- other operating expenses and interest

Question 15

Net profit margin

Answer 15

Net profit
———————-
Sales revenue
X100

Question 16

Average rate of return

Answer 16

Average annual profit
———————————
Cost of investment
X100

Question 17

Percentage growth

Answer 17

Increase in size
—————————-
Original size
X100