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Profit Formula And Break Even

Total Revenue - Total Costs = Profit Formula

Revenue = Price And Quantity

Break even =            fixed costs          

                       (selling price- variable costs)

Break even is where a firms total revenue is the same as total costs.

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Net Cash Flow and Margin Of Safety

Total Cash Inflow (receipts) - Total Cash Outflow (payments)

(Links with cash flow forecasting)

Output - Break Even Point

(Links with Break Even)

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Closing Balance and Total Costs

Closing Balance = Opening Balance + Net Cash Flow

(Links With Cash Flow Forecast)

Total Costs = Fixed Costs + Variable Costs

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