Business Equations
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26 Terms
total costs
total fixed costs + total variable costs
total fixed costs
total costs - total variable costs
total variable costs
total costs - total fixed costs
revenue (3 equations)
revenue = sales price per unit * quantity sold
revenue = gross profit + cost of sales
revenue = profit + cost of sales
profit / loss
revenue - total costs
interest (on loans)
interest (on loans) in % =
(total repayment -borrowed amount / borrowed amount) * 100
net cash flow
total cash inflows - total cash outflows in a given period
opening balance
closing balance of the previous period
closing balance
opening balance + net cash flow
total inflows
net cash flow + total outflows
total outflows
total inflows - net cash flow
break even point (break even chart)
when total revenue = total costs
break even point (formula)
fixed cost / (sales price per unit - variable cost per unit)
break even point (in costs/revenue)
break even point in units * sales price
profit / loss (from break even chart)
total revenue - total costs
margin of safety
actual or budgeted output - break-even point
average rate of return (%)
(average annual profit /cost of investment) * 100
average annual profit
total profit of the investment / number of years
cost of sales
sales revenue - gross profit
gross profit
sales revenue - cost of sales
gross profit margin (%)
(gross profit / sales revenue) * 100
other operating expenses and interest
gross profit - net profit
net profit
gross profit - other operating expenses and interests
net profit margin
(net profit/sales revenue) *100
market share
(sales / total sales of market) * 100
percentage change
( change / original ) * 100
