Business Finance Formula Revision

Selling Price x Quantity sold is the formula for

• Total Revenue

• Total Costs

• Profit

Total costs is calculated as

• Fixed costs - variable costs

• Variable costs + Revenue

• Fixed costs + Variable costs

Margin of safety is calculated as

• Breakeven + actual sales

• Actual sales - breakeven

• Contribution x breakeven

Selling price - Variable Cost per unit is the formula for

• Margin of safety

• Total contribution

• Contribution per unit

Revenue is calculated as

• Sales - Cost of goods sold

• Unit price x quantity sold

• Cost - depreciation

Gross profit is calculated as

• Cost - depreciation

• Revenue - total costs

• Revenue - cost of goods sold

Opening inventory + purchases - closing inventory is the formula for

• Cost of goods sold

• Inventory turnover

• Mark up

Net book value is

• the value of an asset less depreciation

• the value of an asset when it was purchased

• the value of an asset at the end of its useful life

Gross Profit / costs of sales x 100 is the formula for

• Gross Profit Margin

• Profit Margin

• Mark-up

Return on capital employed is calculated as

• Profit / Revenue x 100

• Revenue / Capital employed x 100

• Profit / Capital employed x 100