IB Business Management SL Formulas

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Total revenue

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13 Terms

1

Total revenue

price x quantity

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2

Contribution per unit

price per unit - variable cost per unit

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3

Total contribution

total revenue - total variable costs

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4

Break even

fixed costs/contribution per unit

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5

Total costs

total fixed costs + total variable costs

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6

Total variable costs

variable costs x quantity

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7

Target profit output

(fixed costs + target profit)/contribution per unit

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8

working capital (net current assets)

current assets - current liabilities

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9

net cash flows

total cash inflows - total cash outflows

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10

closing balance

net cash flow + opening balance

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11

Equity

share capital + retained profit

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12

Gross Profit

sales - cost of goods sold

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13

Cost of Goods Sold

beginning inventory + purchases - ending inventory

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