Business formulae
Total costs
Total costs= Total fixed costs + Total variable costs
revenue
revenue = price x quantity
break-even (units)
break-even (units) = fixed costs/(sales price - variable cost)
break-even (revenue)
break-even (revenue)= break-even (units) x sales price
Margin of safety
Margin of safety = actual or budgeted sales - break-even sales
Interest on loans (%)
Interest on loans (%) = 100((total repayment - borrowed amount)/borrowed amount)
net cash flow
net cash flow = cash inflows- cash outlfows (in a given period for both)
Gross profit
sales revenue - cost of sales
Gross profit margin (%)
Gross profit margin (%) = 100(gross profit/sales revenue)
net profit
net profit = gross profit - other operating expenses and interest
Net profit margin (%)
Net profit margin (%) = 100(net profit/sales revenue)
Average rate of return (%)
Average rate of return (%)= 100(avg annual profit/cost of investment)