Equations

• Total Costs =fixed costs + variable costs
• Total fixed costs = total costs -total variable costs
• Total variable costs = total costs - fixed costs
• Revenue = selling price per unit x quantity sold
• Profit/loss= revenue - total costs
• Average unit costs =total costs/ output
• Net cash flow =cash flow income -cash outflows in a given period
• Opening balance = closing balance of previous period
• Closing balance =opening balance + net cash flow
• Break even point : when total revenue = total costs
• Profit/loss of break even graph = total revenue - costs
• Margin of safety = actual output - break even point
• ARoR = ((total profit/ no of years) x100)/cost of investment
• Market share = (sales of one product/ total sales of market) x 100
• Market size = volume of sales of the product or value of sales of the product
• gross profit = sales revenue - cost of sales
• gross profit margin = (gross profit / sales revenue) x100
• operating profit = gross profit - overheads
• net profit = gross profit - overheads
• net profit margin = ( net profit / sales revenue ) x100
• net current assets = total current assets - total current liabilities
• net assets = non-current assets + net current assets - non0current liabilities
• total equity = value of net assets