Business formulae 0.0 / 5 ? Business StudiesAll business topicsGCSEEdexcel Created by: Laura BagleyCreated on: 15-04-19 14:58 What is the formula for total costs? TC= TFC (total fixed costs) +TVC (total variable costs) 1 of 16 How do you work out Variable costs? VC = cost of 1 unit X amount produced 2 of 16 How do you work out revenue? Revenue = price X quantity 3 of 16 What is the formula for break-even? Break-even point in units = fixed costs/(sales price - variable costs) 4 of 16 How do you work out the margin of safety? Margin of safety = actual or budgeted sales - break-even sales 5 of 16 How do you work out the interest on a loan? Interest in % = (total repayment - borrowed amount)/borrowed amount (X100) 6 of 16 What is the formula for net cash flow? Next cash flow = inflows - outflows 7 of 16 How do you find the opening balance? Opening balance = closing balance of the previous period 8 of 16 How do you find the closing balance? Closing balance = opening balance + net cash flow 9 of 16 How do you find the profit/loss of a business? Profit/loss = total revenue - total costs 10 of 16 What is the formula for gross profit? Gross profit = sales revenue - cost of sales 11 of 16 What is the formula for the gross profit margin? Gross profit margin % = gross profit/sales revenue (X100) 12 of 16 How do you work out net profit? Net profit = gross profit - other operating expenses and interest 13 of 16 What is the formula for the net profit margin? Net profit margin % = net profit/sales revenue (X100) 14 of 16 How do you work out the average rate of return? Average rate of return % = average annual profit (Total profit/number of years)/cost of investment (X100) 15 of 16 How do you work out the percentage growth? Percentage growth = increase in size/original size (X100) 16 of 16
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