Business Key Theme 2 0.0 / 5 ? Business StudiesKey CalculationsASEdexcel Created by: taliagsaundersCreated on: 26-04-17 20:41 How do you work out total costs? Fixed costs + variable costs 1 of 20 How do you work out total variable costs? Variable cost per item X quantity produced 2 of 20 How do you work out profit? Revenue - total costs of sales 3 of 20 How do you work out revenue? Quantity sold X average selling price 4 of 20 How do you work out contribution? Selling price - variable costs 5 of 20 How do you work out the total contribution? Contribution per unit X number of units sold 6 of 20 How do you find the breakeven point? Fixed costs ÷ contribution per unit 7 of 20 How do you work out net cash flow? CASHFLOW Total inflows - total outflows 8 of 20 How do you work out the closing balance? CASHFLOW Opening balance + net cash flow 9 of 20 How do you work out the cost of sales? PROFITABILITY Opening stock + purchases - closing stock 10 of 20 How do you work out gross profit? PROFITABILITY Sales revenue - cost of sales 11 of 20 How do you work out the gross profit margin? PROFITABILITY Gross profit ÷ sales revenue X 100 12 of 20 How do you work out operating profit? PROFITABILITY Gross profit - expenses 13 of 20 How do you work out the operating profit margin? PROFITABILITY Operating profit ÷ sales revenue X 100 14 of 20 How do you work out net profit? PROFITABILITY Operating profit- other expenses 15 of 20 How do you work out the net profit margin? PROFITABILITY Net profit ÷ sales revenue X 100 16 of 20 How do you work out current ratio? LIQUIDITY Current assets ÷ current liabilities 17 of 20 How do you work out the acid test ratio? LIQUIDITY (Current assets - stock) ÷ current liabilities 18 of 20 How do you work out productivity? Output ÷ inputs per time period 19 of 20 How do you work out capacity utilisation? Actual level of output ÷ maximum possible output X 100 20 of 20
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