buisness

Total cost =

Fixed + total variable costs

Gross profit =

Revenue- costs of sales

net profit=

Gross profit-expenditures

revenue

Price times quantity sold

Gross profit margin=

Gross profit /revenue times 100 =

Net profit margin=

Net profit / revenue x 100 = %

Break even =

Fixed cost / (selling price - variable costs)=units not £

Margin of safety=

Actual sales- break even point

Average rate of return=

Average annual profit/ cost of investment x 100 = %

Average profit =

Total profit/ number of years

Net cash flow

inflow - outflow

closing balance =

Opening balance + net cash flow

Opening balance

Closing bank balance from previous month

Keep

Revised