Edexcell GCSE Business Paper 1

Total Costs calculation formula

Fixed Costs + (Variable Cost per unit x Quantity)

Break-even output formula

Total Fixed Costs / (Sales Price - Variable Cost per unit)

Net cash flow formula

Cash Inflows - Cash Outflows

Percentage change formula

((New Value - Original Value) / Original Value) x 100

Average value formula

Sum of all values / Total number of values

Total Revenue formula

Price x Quantity

Total Profit formula

Total Revenue - Total Costs

Margin of Safety

$$\text{Actual or Budgeted Sales} - \text{Break-Even Sales}$$

Interest on Loans (%)

$\left(\frac{\text{Total Repayment} - \text{Borrowed Amount}}{\text{Borrowed Amount}}\right) \times 100$

Opening Balance

$\text{Closing Balance of Previous Period}$

Closing Balance

$\text{Opening Balance} + \text{Net Cash Flow}$

Gross Profit

$\text{Sales Revenue} - \text{Cost of Sales}$

Gross Profit Margin (%)

$\left(\frac{\text{Gross Profit}}{\text{Sales Revenue}}\right) \times 100$

Net Profit

$\text{Gross Profit} - \text{Other Expenses \& Interest}$

Net Profit Margin (%)

$\left(\frac{\text{Net Profit}}{\text{Sales Revenue}}\right) \times 100$

Average Rate of Return (ARR) (%)

$\left(\frac{\text{Average Annual Profit}}{\text{Cost of Investment}}\right) \times 100$