theme 2 formulas Flashcards
To learn (21 cards)
Sales revenue Formula
Selling price x Quantity sold
Sales Volume Formula
Sales revenue / selling price
Contribution per unit formula
Selling price - Variable cost per unit sold
Total contribution formula
Contribution per unit x number of units sold
Profit / Loss Formula
total revenue - total costs
or
total contribution - fixed costs
Budget variance formula
actual figure - budgeted figure
Break even point formula
total revenue - total costs
Break even output formula
total fixed costs / contribution per unit
Margin of safety formula
Current sales volume / output - break even output
Gross profit formula
Revenue - total variable costs
Operating profit formula
Gross profit - fixed costs
Net profit formula
Operating profit - finance costs
Gross profit margin
Gross profit / sales revenue x 100
Operating profit margin
Operating profit / sales revenue x 100
Net profit Margin
Net profit / sales revenue x 100
Current ratio formula
Current assets / current liabilities
Acid ratio formula
Current assets - stock
Working capital formula
Current assets - current liabilities
Net cash flow formula
cash inflow - cash outflow
Productivity formula
Output per time period / number of employees at work
Capacity utilisation
Actual output / possible maximum output x 100
