GCSE business formulas

• percentage change = change / original X 100
• total revenue = price X quantity
• total costs = fixed costs + variable costs
• profit = revenue - total costs
• total variable costs = variable costs per unit X number of units sold
• average yearly profit = total profits / number of years
• break even = fixed costs / contribution (selling price - variable cost per unit)
• margin of safety = quantity sold - breakeven quantity
• net cash flow = total inflows - total outflows
• opening balance = closing balance from previous month
• closing balance = opening balance + net cash flow
• sales growth % = sales this year - sales last year X 100
• average rate of return (ARR) = total net profit / initial cost X 100
• gross profit margin (%) = gross profit / sales revenue X 100
• net profit margin (%) = net profit / sales revenue X 100