BTEC Business Equations

What is the formula for calculating profit?

• Profit = Revenue * Cost

• Profit = Revenue / Cost

• Profit = Revenue + Cost

• Profit = Revenue - Cost

What is the formula for calculating gross profit?

• Total Revenue + Cost of Goods Sold (COGS)

• Total Revenue - Cost of Goods Sold (COGS)

• Total Revenue x Cost of Goods Sold (COGS)

• Total Revenue ÷ Cost of Goods Sold (COGS)

What is the formula for calculating net profit?

• Total revenue + Total expenses

• Total revenue x Total expenses

• Total revenue - Total expenses

• Total revenue / Total expenses

What is the formula for calculating break-even point?

• Break-even point = Fixed costs - contribution

• Break-even point = Fixed costs / contribution

• Break-even point = Fixed costs x contribution

• Break-even point = Fixed costs + contribution

What is the formula for calculating contribution per unit?

• Contribution per unit = (Selling price per unit + Variable cost per unit)

• Contribution per unit = (Selling price per unit / Variable cost per unit)

• Contribution per unit = (Selling price per unit - Variable cost per unit)

• Contribution per unit = (Selling price per unit * Variable cost per unit)

What is the formula for calculating total contribution?

• average of individual contributions

• product of individual contributions

• difference of individual contributions

• sum of individual contributions

What is the formula for calculating margin of safety?

• Margin of Safety = Actual Sales - Break-even Sales

• Margin of Safety = Actual Sales + Break-even Sales

• Margin of Safety = Actual Sales / Break-even Sales

• Margin of Safety = Actual Sales x Break-even Sales)

What is the formula for calculating sales revenue?

• Number of units sold / Selling price per unit

• Number of units sold * Selling price per unit

• Number of units sold + Selling price per unit

• Number of units sold - Selling price per unit

What is the equation for the acid test ratio?

• Current assets - current liabilities

• Current assets / current liabilities

• Current assets - stock / current liabilities

• Current assets / current liabilities - stock