Business Formula

• Sales Revenue = selling price per item x number sold
• Total variable costs = variable cost per item x number sold
• Total costs = fixed costs + total variable costs
• Cost per unit = total costs ÷ number sold
• Percentage change = change (difference) ÷ original amount *100
• Market share = business’s sales ÷ total market sales *100 %
• Market growth = change in market size ÷ original market size *100
• Total cash inflows = add all inflows
• Total cash outflows = add all outflows
• Net Cash Flow = Cash inflows - cash outflows
• Profit = sales revenue – total costs
• Opening balance = closing balance of previous month
• Closing balance = Opening balance + Net Cash flow
• Net Current Assets = (Current assets + non-current assets) - (Current liabilities + non-current liabilities)
• Average rate of return = Average yearly profit/cost of investment *100
• average yearly profit = Total profits ÷ Number of years
• Margin of safety = Actual/ Predicted output - Break-even output
• Gross profit = Revenue - cost of sales
• Net profit = Gross Profit- Overheads, tax and Interest
• Gross Profit Margin = Gross Profit ÷ Revenue *100
• Net Profit Margin = Net Profit ÷ Revenue *100
• Total equity = value of net assets
• Break-even point from a break-even chart: when total revenue = total costs
• Profit/loss from a break-even chart = total revenue - total costs
• Net assets = non-current assets + net current assets – non-current liabilities
• Operating profit = gross profit − overheads
• Average unit costs = total costs / output