equations

• sales revenue

  price x quantity of output
• total costs

  fixed costs + variable costs
• average costs

  total costs / output
• profit

  total revenue - total costs
• unit contribution

  selling price - variable costs
• total contribution

  total revenue - total variable costs
• total contribution 2

  unit contribution x number of units sold
• break even output

  fixed costs / contribution
• gross profits

  revenue - costs of sales
• operating profit

  gross profit - operating costs
• net profit

  operating profit - interest
• gross profit margin

  (gross profit / revenue) x 100
• operating profit margin

  (operating profit / revenue) x100
• net profit margin

  (net profit / revenue) x100
• currenr ratio

  currenr assets / current liabilities
• acid test ratio

  (current assets - stock/inventories) / current liabilities
• working capital

  current assets - current liabilities
• capacuty utilisation

  (current output / maximum possible output) x100
• budget variance

  budgeted amount - actual amount
• labour productivity

  output / number of employees