Formulas and Calculations Theme 2 Flashcards
Sales revenue
selling price * sales volume
sales volume
sales revenue / selling price
contribution per unit
selling price per unit - variable costs per unit
total contribution
contribution per unit * number of units sold
Budget variance
actual figure - budgeted figure
break even point
is where total revenue = total costs
break even output
total fixed costs / contribution per unit
margin of safety
current sales volume / output - break even output
gross profit
revenue - total variable costs
operating profit
gross profit - fixed costs
net profit for year
operating profit +/- finanace costs or income
gross profit margin
gross profit / revenue * 100
operating profit
opertaing profit/revenue * 100
net prfoit margin
net profit/ revenue * 100
current ratio
current assets / current liabilities
