business paper equations

sales revenue

selling price per item x number sold

total variable costs

variable costs per item x number sold

total costs

fixed costs + variable costs

profit

sales revenue - total costs

cost per unit

total costs / number sold

percentage change

( change / original ) x 100

market share

(business sales / total market sales) x100

market growth

(change in market size / original market size) x100

total cash inflows

add all inflows

total cash outflows

add all ouflows

net cash flows

cash inflows-cash outflows

opening balance

closing balance of previous month

closing balance

opening balance + net cash flow

net assets

(current assets + non current assets) - (current liabilities + non current liabilities)

average rate of return

(average yearly profit / cost of investment ) x 100

==STEP 1-== calculate average yearly profit: %%total profits / number of yrs%%

==STEP 2-== then calculate average rate of return

margin of safety

actual output - break even output

gross profit

revenue - cost of sales

net profit

gross profit - overheads

gross profit margin

(gross profit / revenue) x 100

net profit margin

(net profit / revenue) x 100