business equations 1.3

What is the break even output equation

Fixed costs / (selling price per unit - variable costs per unit)

Contribution per unit equation

Selling price per unit - variable cost per unit

Total contribution equation

Contribution per unit x number of units sold

Break even point in revenue equation

Break even units x selling price per unit

Profit equation

Total revenue - total costs

Total revenue equation

Selling price per unit x quantity sold

Total costs equation

Fixed costs + (variable costs per unit x quantity)

Margin of safety equation

Actual output - break even output

Net cash flow equation

Cash inflows - cash outflows

Opening balance equation

Closing balance from previous month

Closing balance equation

Opening balance + net cash flow

Interest paid equation

Amount borrowed x (interest rate / 100)

Total repayment equation

Amount borrowed + interest paid

Interest earned equation

Amount saved x (interest rate / 100)

Percentage change equation

(New rate - old rate) / old rate x 100