Theme 2 Flashcards
Net cash flow
Total inflows – Total outflows
Sales volume
total number of units sold over a period of time
Sales revenue
number of units sold x unit price
Total variable costs
number of units sold x variable cost per unit
Total costs
Fixed costs + variable costs
Contribution per unit
Selling price per unit – Variable cost per unit
Total contribution
Contribution per unit x Number of units sold
Break-even
Fixed costs/ Contribution per unit
Variance
Actual – Budget
Gross profit
Sales revenue minus cost of sales
Operating profit
Gross profit minus overheads
Net profit
Operating Profit +/- finance costs
Gross profit margin
(Gross profit / Sales revenue) x 100
Operating profit margin
(Operating profit/ Sales revenue) x 100
Profit for the year (net profit) margin
(Profit for the year / Sales revenue) x 100
