formulas Flashcards
(15 cards)
revenue
selling price per unit x quantity sold
total costs
fixed costs + variable costs
profit
total sales - total costs
gross profit
total revenue - cost of sales
net profit
total revenue - cost of sales - other expenses
gross profit margin
gross profit/sales revenue x 100
GP/ SR x 100
net profit margin
net profit/sales revenue x 100
average rate of return
average annual profit/ cost of investment x 100
Pf I/ c I x 100
break even point
fixed costs/selling price - variable cost per unit
FC/S - vc per unit
gross profit meaning
the amount of money the business makes fter the direct costs of making/selling its products or providing its services, otherwise known as its costs of sales, are deducted from its sales revenue
net profit
the profit the business generates after all other expenses, not included in the calculation of gross profit, have been deducted.
Average annual profit
Total profit/years
Revenue
Selling price x how many sold
Profit
Total sales - total costs
Total costs
Fixed + variable
