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Flashcards in UNIT 5 Deck (8)
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1

RETURN ON INVESTMENT

(OPERATING PROFIT X 100) / CAPITAL INVESTED

2

TOTAL CONTRIBUTION

REVENUE - VARIABLE COSTS

3

CONTRIBUTION PER UNIT

selling price of one unit of output - variable cost of producing that unit
OR
total contribution / total output

4

BREAK-EVEN OUTPUT

fixed costs / (sp per unit - vc per unit)
OR
fixed costs / contribution per unit

5

GROSS PROFIT MARGIN

(GROSS PROFIT X 100) / REVENUE

6

OPERATING PROFIT MARGIN

(OPERATING PROFIT X 100) / REVENUE

7

PROFIT FOR THE YEAR MARGIN

(PROFIT FOR THE YEAR X 100) / REVENUE

8

MARGIN OF SAFETY

ACTUAL LEVEL OF OUTPUT - BREAK-EVEN LEVEL OF OUTPUT