Theme 2 Calculations 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 - Cost of sales
Operating Profit
Gross profit - Overheads
Net Profit
Operating profit +/- Finance costs
Gross Profit Margin
Gross profit
———————— x100
Sales revenue
Operating Profit Margin
Operating profit
———————— x100
Sales revenue
Profit For The Year (Net Profit) Margin
Profit for the year
———————— x100
Sales revenue
