Business Studies: Planning and Financing a Business

Here are the equations to be learnt for the financial part of this unit

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  • Created by: hajrah
  • Created on: 07-01-10 20:57

Financial Planning Equations

  • Total Cost = Fixed Cost + Variable Cost
  • Revenue = Price x Units Sold
  • Proft = Revenue - Total Cost
  • Total Revenue = Selling Price x Quantity Sold
  • Contribution = Selling Price - Variable Cost
  • Break-Even = Fixed Cost
  • Contributrion
  • (contribution) Profit = Total Contribution - Fixed Cost
  • Net Monthly Cashflow = Cash Inflow - Cash Outflow
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