Unit 7 Business Decision Making Formulas

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Revenue
Unit Sold x Selling Price Per Unit
1 of 12
Gross Profit
Revenue - Cost of Sales
2 of 12
Net Profit
Gross Profit - Expenditure
3 of 12
Gross Profit Margin
Gross Profit/Revenue x 100
4 of 12
Net Profit Margin
Net Profit/Revenue x 100
5 of 12
Mark Up
Gross Profit/ Cost of Sales x 100
6 of 12
Return on Capital Employed (ROCE)
Net Profit (before tax and interest)/ Capital Employed x 100
7 of 12
Current Ratio
Current Assets/Current Liabilities
8 of 12
Liquid Capital Ratio (Acid Test Ratio)
Current Assets - Inventory/Current Liabilities
9 of 12
Break Even
Fixed Costs/ Contribution Per Unit
10 of 12
Contribution Per Unit
Selling Price Per Unit - Variable Costs Per Unit
11 of 12
Margin of Safety
Actual Level of Output - Break Even Level of Output
12 of 12

Other cards in this set

Card 2

Front

Gross Profit

Back

Revenue - Cost of Sales

Card 3

Front

Net Profit

Back

Preview of the front of card 3

Card 4

Front

Gross Profit Margin

Back

Preview of the front of card 4

Card 5

Front

Net Profit Margin

Back

Preview of the front of card 5
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