equations

• PED equation


  % change in quantity demanded / % change in price
• YED equation


  % change in quantity demanded / % change in income
• net cash flow


  cash inflows - cash outflows
• sales revenue equation


  selling price x quantity sold
• total variable costs equation

  variable costs per unit x quantity sold
• total costs equation


  fixed costs + variable costs
• proft equation

  total revenue - total costs
• break even output equation

  fixed costs / contribution per unit
• contribution per unit equation

  selling price - variable costs
• total contribution equation


  contribution per unit x quantity sold
• margin of safety equation

  actual output - break even output
• budget variance


  budget amount - actual amount
• gross profit


  sales revenue - cost of sales
• gross profit margin

  gross profit / revenue x 100
• operating (net) profit equation

  gross profit - (fixed costs+variable costs)
• operating profit margin equation

  (operating profit / revenue) x 100
• current ratio


  current assets / current liabilities
• acid test ratio equation

  (current assets - stock) / current liabilities