Business finance formulas

Break-even output

• total fixed costs $\div$ unit contribution 

• total fixed costs + unit contribution

• total fixed costs x unit contribution

• total fixed costs - unit contribution

Total costs

• fixed costs - total variable costs

• fixed costs + total variable costs

• fixed costs $\div$ total variable costs

• fixed costs x total variable costs

Total revenue

• selling price x quantity

• selling price + quantity

• selling price $\div$ quantity

• selling price - quantity

Contribution

• selling price + variable cost

• selling price x variable cost

• selling price $\div$ variable cost

• selling price - variable cost

Margin of safety

• actual sales x break-even level of output

• actual sales + break-even level of output

• actual sales - break-even level of output

• actual sales $\div$ break-even level of output

Net cash flow

• cash inflows - cash outflows

• cash inflows + cash outflows

• cash inflows x cash outflows

• cash inflows $\div$ cash outflows

Closing balance

• opening balance - net cash flow

• opening balance + net cash flow

• opening balance x net cash flow

• opening balance $\div$ net cash flow

Costs of goods sold

• (opening inventory + purchases) - closing inventory

• (opening inventory - purchases) + closing inventory

• (opening inventory x purchases) - closing inventory

• (opening balance + purchases) / closing inventory

Gross profit

• sales revenue + cost of sales

• sales revenue x cost of sales

• sales revenue - cost of sales

• sales revenue $\div$ cost of sales

Net profit

• operating profit x interest

• operating profit + interest

• operating profit $\div$ interest

• operating profit - interest