Finance Formula Sheet- Flashcards
(14 cards)
What is the formula for total cost?
Total cost= Total variable cost+ fixed cost
What is the equation for total revenue?
total revenue= selling price*number of units sold
What is the equation for total variable cost?
total variable cost= variable cost*number of units
What are the three calculations for profit?
profit= total revenue-total costs
profit=margin of safety*contribution per unit
profit=total contribution-fixed cost
what is the equation for break even quantity?
Break even quantity= fixed cost/ contribution per unit
What is the equation for margin of safety?
Margin of safety= current output- break even point
what is the equation for contribution per unit?
Contribution per unit= selling price- variable cost
what are the two equations for total contribution?
total contribution= total revenue- total variable cost
total contribution= contribution per unit*quantity
What is the equation for variance?
variance= actual amount- budgeted amount
what is the equation for net cash flow?
net cash flow= cash inflows- cash outflows
what is the equation for closing balancing?
closing balance= opening balance+ net cash flow
what is the equation for gross profit?
gross profit= sales revenue- direct cost of sales
what is the equation for gross profit margin?
gross profit margin= gross profit/ revenue *100
what is the equation for operating profit?
operating profit= gross profit- overhead/expences/indirect costs
