Business Theme 2 Formulas

All theme 2 formulas taken from sheet

Sales Revenue (£) = No of units sold x __________.

selling price

Total Costs (£) = Fixed Costs + __________.

Total Variable Costs

Total Variable Costs (£) = No of units sold x __________.

variable cost per unit

Contribution per unit (£) = Selling Price (pu) – __________ (pu).

Variable Cost

Breakeven Output (units) = Fixed Costs / __________ per unit.

Contribution

Margin of Safety (units) = Current output – __________.

Breakeven output

Net Cash (£) = Total Inflow – __________.

Total Outflow

Closing Balance (£) = Net Cash + __________.

Opening Balance

Total Contribution = (Selling Price – __________) pu x Units sold.

Variable Cost

Budget Variance = Actual – __________.

Budgeted

Net (operating) Profit Margin (%) = net (operating) profit x __________.

Sales revenue / 100

Gross Profit = Revenue - __________.

Cost of Sales

Operating Profit = Gross Profit - __________.

Operating Costs

Labour Productivity (units per worker) = __________ per period / Number of employees per period.

output

Capacity Utilisation (%) = current output x __________.

Maximum possible output /100

Unit Cost (£ pu) = Total Cost / __________.

Total Output (units)

Current Ratio = __________ / Current Liabilities.

Current Assets

Acid Test Ratio = (Current Assets – __________) / Current Liabilities.

Inventories (Stock)