Some of the Equations You Need to Know (A level Business)

Sebastian is calculating the breakeven point for his new business. Fill in the blank: Breakeven = Total Fixed Costs / _______.

• Contribution per unit

• Total Revenue

• Total Sales

• Total Profit

Fill in the blank: Contribution = Selling Price - _______.

• Variable Cost

• Profit

• Revenue

• Expense

Fill in the blank: Total Contribution = Contribution per Unit x _______.

• Number of Units sold

• Total Revenue

• Fixed Costs

• Variable Costs

Fill in the blank: Margin of Safety = Total Output - _______.

• Total Input

• Fixed Costs

• Variable Costs

• Break-even Point

Fill in the blank: Gross Profit = Sales Revenue - _______.

• Cost of Goods Sold (COGS)

• Operating Expenses

• Net Income

• Interest Expense

Fill in the blank: GP Margin = Gross Profit / _______ x 100.

• Revenue

• Cost of Goods Sold

• Net Income

• Operating Expenses

Fill in the blank: Operating Profit = Gross Profit - _______.

• Expenses

• Net Income

• Revenue

• Cost of Goods Sold

Fill in the blank: OP Margin = Operating Profit / _______ x 100.

• Sales Revenue

• Net Income

• Total Assets

• Equity

Amelia is managing the finances of her small business. She needs to calculate the Working Capital to ensure she has enough liquidity. Fill in the blank: Working Capital = Current Assets - _______.

• Current Liabilities

• Fixed Assets

• Long-term Debt

• Equity

Fill in the blank: Productivity = Output per Time Period / _______.

• Input per Time Period

• Output per Time Period

• Time Period

• Productivity