Unit 5 Formula

Question 1

Variance

Answer 1

Actual - Budget

Question 2

Contribution per unit

Answer 2

Selling Price per Unit - Variable Cost per unit

Question 3

Total Contribution

Answer 3

Contribution per unit X Number of units sold

Question 4

Break even

Answer 4

Fixed costs
______________________
contribution per unit

Question 5

Margin of safety

Answer 5

Actual Output - Break Even Output

Question 6

Gross Profit

Answer 6

Sales Revenue - Cost of sales

Question 7

Gross Profit Margin

Answer 7

Gross Profit
———————– X100
Sales Revenue

Question 8

Operating Profit

Answer 8

Gross Profit - Expenses

Question 9

Operating Profit Margin

Answer 9

Operating Profit
————————- X100
Sales Revenue

Question 10

Net profit (Profit for the year)

Answer 10

Operating profit - Tax and other Expenses

Question 11

Net profit margin (profit for the year margin)

Answer 11

Net profit (Profit for the year)
———————————————- X100
Sales Revenue

Question 12

Return on Investment (ROI)

Answer 12

Operating Profit
—————————- X100
Capital Employed

Question 13

Net cash flow

Answer 13

Total inflows - Total outflows

Question 14

Closing balance

Answer 14

Opening Balance + Net cash flow