Unit 6 Equations Flashcards
GROSS PROFIT
Sales revenue - cost of sales
GROSS PROFIT MARGIN
Gross profit/ total revenue x 100 (expressed as a %)
NET PROFIT
Gross profit - overheads
NET PROFIT MARGIN
Net profit/ total revenue x 100 (expressed as a %)
NET CASH FLOW
Cash inflows- cash outflows
CLOSING BALANCE
Opening balance + net cash flow
SALES REVENUE
Selling price per unit (SPPU) x quantity sold (Q)
PROFIT
Total revenue - costs
TOTAL COSTS
Total fixed costs + total variable costs
CONTRIBUTION PER UNIT
Selling price per unit (SPPU) - variable costs per unit (VCPU)
TOTAL VARIABLE COSTS
Variable costs per unit (VCPU) x quantity (Q)
BREAK-EVEN
Output level where total revenue = total costs , where total profit/loss = 0
MARGIN OF SAFETY
Actual output - breakeven output
REVENUE
Unit price x Quantity sold
GROSS PROFIT
Sales revenue - Cost of Goods sold
COST OF GOODS SOLD
Opening inventory + Purchases - Closing inventory
PROFIT/LOSS FOR THE YEAR
Gross profit - expenses + other income
NET BOOK VALUE
Cost - depreciation
NET CURRENT ASSETS
Current assets - current liabilities
NET ASSETS
Non - current assets + Net current assets - Long term liabilities
CAPITAL EMPLOYED
Opening Capital + Profit for the year - drawings
BALANCE SHEET (WHAT NEEDS TO BALANCE?)
Net Assets = Capital Employed
Gross profit margin
Gross profit/Revenue x 100
Mark - up
Gross profit/cost of sales x 100
