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Flashcards in Formulae Deck (12)
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1

Sales revenue =

Selling price x quantity sold

2

total variable costs =

Variable cost per unit x number of units

3

Variable cost per unit =

Total variable costs/number of units

4

Total costs =

Total fixed costs + total variable costs

5

Contribution per unit =

Selling price - variable cost per unit

6

Total contribution =

Contribution per unit x number of units

7

Break even =

Fixed costs/contribution per unit

8

Margin of safety =

Actual output - break even output

9

What are the three ways of finding profit?

1) sales revenue - total costs
2) total contribution - fixed costs
3) margin of safety x contribution per unit

10

Net cash flow =

Total inflow - total outflow

11

Closing balance =

Opening balance + net cash Flow

12

Price =

Unit cost + (mark up x unit cost)