business formulas

Cards (16)

  • sales revenue
    price x quantity
  • variable costs
    variable cost per unit x number of units sold
  • total costs
    fixed costs + variable costs
  • gross profit
    sales revenue - cost of sales
  • gross profit margin
    gross profit/sales revenue x100
  • net profit
    gross profit - other expenses
  • net profit margin
    net profit/sales revenue x100
  • closing balance
    net cash flow + opening balance
  • contribution
    selling price - variable costs
  • break even
    fixed costs/ contribution
  • average rate of return
    average anual profit/total cost x100
  • margin of safety
    total output - breakeven
  • interest on loans
    total repayment-borrowed amount/borrowed amount x100
  • net cash flow
    cash inflow - cash outflow
  • opening balance
    previous months closing balance
  • percentage change
    new-old/old x100