business equations

Cards (12)

  • revenue= price x quantity
  • profit= revenue - total costs
  • net cash flow= cash inflows - cash outflows
  • balance(closing)= opening balance + net cash flow
  • opening balance= closing balance from previous month
  • break-even point= fixed costs/ selling price - variable cost
  • margin of saftey= actual sales - break even point
  • break-even point(in units)= price x break even point
  • total cost= fixed cost + variable cost
  • interest(on loans)= total repayment - borrowed / borrowed amount x100
  • sales revenue= number of units sold x average price
  • variable costs= quantity sold x variable cost per unit