finance btec equations
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21 Terms
Variable cost
Variable cost per unit x quantity
Total costs
Fixed costs + variable costs + semi-variable costs
Total revenue
Quantity of goods sold x selling price per unit
Contribution per unit
Selling price - variable costs per unit
Break even point
Fixed costs / contribution per unit
Margin of safety
Sales - break even level of output
Months to break even
Break even units / units produced
Per month
Net current assets
Current assets + fixed assets - current liabilities
Annual depreciation
(Assets purchased - estimated salvage value) / estimated useful life
Gross profit margin
Gross profit / revenue x 100
Mark up
Gross profit / cost of sales x 100
Net Profit margin
Net profit / revenue x 100
ROCE
Net profit before interest and tax / capital employed x 100
Current ratio formula
Current assets / current liabilities
Liquid capital ratio formula
(Current assets - inventory) / current liabilities
Trade receivable days
(Trade receivables / credit sales) x 365
Trade payable days
(Trade payables / credit purchases) x 365
Inventory turnover
(Average inventory / cost of sales) x 365
Note 
Flashcards (27)