Theme 1 formulas Flashcards
1
Q
Total cost formula
A
TVC x TFC
2
Q
Average cost formula
A
Total Variable Costs/ Quantity produced
3
Q
What is ‘Marginal Cost’?
A
Cost of producing one extra unit
4
Q
Percentage change formular
A
Difference in numbers/ Original number x 100
5
Q
Contribution formular
A
Selling price - variable cost per unit
6
Q
Total contribution formular
A
Contribution per unit x total units sold
7
Q
Gross profit formular
A
total revenue - the cost of the goods sold
8
Q
Gross profit margin formular
A
Gross profit / sales (expressed as a percentage)
