theme 2 Flashcards
(19 cards)
how do you work out net cash flow?
total inflows - total outflows
how do you work out sales volume?
total number of units sold over a period of time
how do you work out sales revenue?
number of units sold x unit price
how do you work out total variable costs?
number of units sold x variable cost per unit
how do you work out total costs?
fixed costs + variable costs
how do you work out contribution per unit?
selling price per unit - variable cost per unit
how do you work out total contribution?
contribution per unit x number of units sold
how do you work out break even?
fixed costs / contribution per unit
how do you work out variance?
actual - budget
how do you work out gross profit?
sales revenue - cost of sales
how do you work out operating profit?
gross profit - overheads
how do you work out net profit?
operating profit +/- finance costs
how do you work out gross profit margin?
gross profit / sales revenue x 100
how do you work out operating profit margin?
operating profit / sales revenue x 100
how do you work out profit for the year (net profit0 margin?
profit for the year / sales revenue x 100
how do you work out current ratio?
current assets / current liabilities
how do you work out acid test ratio?
current assets - stock / current liabilities
how do you work out productivity (labour)?
output per period (units) / number of employees in that period
how do you work out capacity utilization?
actual level of output / maximum possible output x 100
