FORMULAE

• Total costs

  Total fixed costs + Total variable costs
• Variable costs


  Cost of one unit x Quantity produced
• Revenue


  Price x Quantity
• Break even


  Fixed costs / Sales price - Variable costs
• Margin of Safety


  Actual or budgeted sales - Break even sales
• Interest (on loans)


  Total repayment - Borrowed amount / Borrowed amount x 100
• Net cash flow


  Cash inflows - Cash outflows in a given period
• Opening balance

  Closing balance of previous period
• Closing balance


  Opening balance + Net cash flow
• Profit


  Total revenue - Total costs
• Gross profit

  Sale revenue - Costs of sales
• Gross profit margin


  Gross profit / Sales revenue x 100
• Net profit

  Gross profit - Other operating expenses and interest
• Net profit margin


  Net profit / Sales revenue x 100
• Average rate of return

  Average annual profit (Total profit / Number of years) / Cost of investment x 100
• Percentage growth


  Increase in size / Original size x 100
• Contribution


  Selling price - Contribution
• Percentage Change


  Change in difference / Original x 100