unit 5 equations Flashcards
ROI formula
(ROI / Cost of investment) X 100
Percentage change in profit formula
(Current year’s profit - previous year’s profit) / previous year’s profit) X 100
Gross profit formula
Gross profit = sales revenues - cost of sales
Operating profit formula
Operating profit = gross profit - operating expenses
Profit for the year formula
Profit for the year = operating profit - net finance costs - tax
Operating profit margin formula
(Operating profit / sales revenue) X 100
Net profit margin
(Net profit / sales revenue) X 100
gross profit margin
(Gross profit)
——————– X100
sales revenue
contribution per unit
selling price per unit - variable cost per unit
total contribution formula
total revenue - TVC/contribution per unit X num of units sold
Break even output formula
Fixed costs/contribution per unit(sp-vc)
margin of safety formula
(actual output - break even output) / actual X100
opening balance
same as closing balance of previous
amount of money at start
0 for new
closing balance
net cash flow + opening balance
net cash flow
total inflow - total outflow
