business financial equations 0.0 / 5 ? Business StudiesFinancial PlanningA2/A-levelAQA Created by: charlie ohareCreated on: 11-04-23 15:32 return on investment return / cost of investment 1 of 15 gross profit total revenue - total variable costs 2 of 15 operating profit gross profit - fixed costs 3 of 15 net profit operating profit -tax , non operating expenses 4 of 15 gross profit margin gross profit / revenue 5 of 15 operating profit margin operating profit / revenue 6 of 15 net profit margin net profit / revenue 7 of 15 equity assets - liabilities 8 of 15 debt equity ratio total liabilities / shareholder equity 9 of 15 fixed costs costs that do not change on output e.g. rent , salaries 10 of 15 variable costs costs which range on output e.g. wages , raw materials 11 of 15 contribution per unit selling price per unit - variable cost per unit 12 of 15 total contribution total sales - total variable costs 13 of 15 break even output fixed cost / contribution per unit 14 of 15 margin of safety (current sales - break even point) / current sales x 100 15 of 15
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