Finace Equations Flashcards
(8 cards)
1
Q
Net Cash Flow
A
Cash inflows — Cash Outflows
2
Q
Return on investment
A
(Profit from the investment / cost of the investment) X 100
3
Q
Contribution
A
Total sales — total variable cost
4
Q
Contribution per unit
A
Selling price per unit — variable cost
5
Q
Total Controbution
A
Contribution X number of units sold
6
Q
Profit
(Using Contribution)
A
Controbution — fixed cost
7
Q
Breakeven output (units)
A
Fixed cost (£) / Controbution per unit
8
Q
Margin of safety
A
Actual out put — breakeven output
