Formulas

• Profit

  Sales revenue - total costs
• Total costs

  Total fixed costs + total variable costs
• Total variable costs

  Variable cost per unit x quantity made
• Revenue

  Selling price per unit x quantity sold
• Average unit costs

  Total costs / output
• Net cash flow

  Total cash inflows - total cash outflows
• Average rate of return

  (average annual profit / cost of investment) x 100
• Gross profit

  Sales revenue - cost of sales
• Gross profit margin

  (Gross profit / sales revenue) x 100
• Net profit

  Gross profit - overheads
• Net profit margin

  (Net profit / sales revenue) x 100
• Net current assets

  Total current assets - total current liabilities