L3 BTEC Business- Unit 3 Formulas Flashcards
1
Q
Profit
A
total revenue - total costs
2
Q
Gross Profit
A
sales revenue - costs of goods sold
3
Q
Sales Revenue
A
quantity sold x price per unit
4
Q
Net Profit
A
gross profit - other expenses
5
Q
Closing balance
A
opening balance + net cash flow
6
Q
Opening balance
A
previous months’ closing balance
7
Q
Total cash available
A
opening balance + total inflows
8
Q
Net cash flow
A
total inflows - total outflows
9
Q
Break even
A
fixed costs / contribution per unit
10
Q
Contribution per unit
A
price per unit - variable cost per unit
11
Q
Margin of safety
A
actual sales - Break even point
12
Q
Profit for the year
A
revenue - cost of sales - expenses
13
Q
Profit (using contribution)
A
contribution per unit x margin of safety
14
Q
Total contribution
A
sales revenue - total variable costs
15
Q
Total variable cost
A
variable cost per unit x quantity sold
