Theme 2 Flashcards
(24 cards)
Break even
Total fixed costs divided by contribution per unit
Contribution
Selling price - Variable cost per unit
Total contribution
Contribution per unit x Number of units sold
Margin of safety
Total output - Break even point
Gross profit
Sales revenue - Cost of sale
Gross profit margin
Gross profit divided by Sales revenue x100
Operating profit
Gross profit - Expenses
Operating profit margin
Operating profit divided by Sales revenue x100
Working capital
Current assets - Current liabilities
Productivity
Output per time period divided by Input per time period
Sales volume
Sales revenue divided by Price
Sales revenue
Price x Quantity
Total costs
Fixed costs + Variable costs
Total variable cost (1)
Total costs - Fixed costs
Total variable costs (2)
Average variable cost x Output
Average variable costs
Variable costs divided by Output
Profit
Total revenue - Total costs
Net profit
Operating profit - Interest
Net profit margin
Net profit divided by sales revenue x100
Current ratio
Current assets divided by Current liabilities
Acid test ratio
(Current assets - Stock) divided by Current Liabilities
Capital productivity
Output per time period divided by number of machines
Capacity utilisation
Actual output divided by Maximum output x100
Labour productivity
Output per time period divided by number of workers who have worked
