BUSINESS EQUATIONS

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TOTAL COSTS
VARIABLE COSTS + FIXED COSTS
1 of 14
REVENUE
PRICE x QUANTITY
2 of 14
BREAK EVEN POINT IN UNITS
FIXED COSTS / (SALES PRICE - VARIABLE COSTS)
3 of 14
BREAK EVEN POINT IN COSTS/REVENUE
BREAK EVEN POINT x SALES PRICE
4 of 14
MARGIN OF SAFETY
ACTUAL OR BUDGETED SALES - BREAK EVEN SALES
5 of 14
INTERST (ON LOANS) IN %
(TOTAL REPAYMENT - BORROWED AMOUNT) / BORROWED AMOUNT x 100
6 of 14
NET CASH-FLOW
CASH INFLOWS - CASH OUTFLOWS IN A GIVEN PERIOD
7 of 14
OPENING BALANCE
CLOSING BALANCE OF PREVIOUS PERIOD
8 of 14
CLOSING BALANCE
OPENING BALANCE + NET CASH-FLOW
9 of 14
GROSS PROFIT
SALES REVENUE - COST OF SALES
10 of 14
GROSS PROFIT MARGIN (%)
GROSS PROFIT / REVENUE x 100
11 of 14
NET PROFIT
GROSS PROFIT - OTHER OPERATING EXPENSES AND INTEREST
12 of 14
NET PROFIT MARGIN (%)
NET PROFIT / REVENUE x 100
13 of 14
AVERAGE RATE OF RETURN (%)
AVERAGE ANNUAL PROFIT (TOTAL PROFIT / NO. OF YEARS) / COST OF INVESTMENT x 100
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Other cards in this set

Card 2

Front

PRICE x QUANTITY

Back

REVENUE

Card 3

Front

FIXED COSTS / (SALES PRICE - VARIABLE COSTS)

Back

Preview of the back of card 3

Card 4

Front

BREAK EVEN POINT x SALES PRICE

Back

Preview of the back of card 4

Card 5

Front

ACTUAL OR BUDGETED SALES - BREAK EVEN SALES

Back

Preview of the back of card 5
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