Formulas Flashcards
1
Q
Revenue
A
Selling price x quantity sold
2
Q
Variable costs
A
Variable cost per unit x output
3
Q
Total costs
A
Fixed costs + Variable costs
4
Q
Profit or loss
A
Revenue - Total costs
5
Q
Gross profit
A
Revenue - Cost of sales
6
Q
Net profit
A
Gross profit - expenses
7
Q
Gross profit margin
A
Gross profit/Revenue x 100
8
Q
Net profit margin
A
Net profit/Revenue x 100
9
Q
Average rate of return
A
Annual average profit/Cost of investment x 100
10
Q
Break-even
A
Fixed costs/(Selling price - variable costs)
11
Q
Closing balance
A
Net cash flow + Opening balance
12
Q
Net cash flow
A
Total inflows - Total outflows
