GCSE business formulas

Cards (15)

  • 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