FORMULAS

• Total costs


  Variable costs + fixed costs
• Total revenue


  Price x quantity sold
• Gross profit


  Sales revenue - sales cost
• Net profit


  Sales revenue - (fixed + variable costs)
• Gross profit margin


  Gross profit / sales revenue x 100
• Net profit margin


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


  Average annual profit / initial capital outlay x 100
• Break even


  Fixed cost / (selling price - variable costs)