Formulas Flashcards by Billy Chambers

Q

Break even formula

A

Fixed costs/contribution

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Q

Margin of safety

A

Actual sales-break even sales

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Q

Contribution

A

Selling price-variable cost per unit

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Q

Net profit margin

A

Net profit/revenue*100

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Q

Gross profit margin

A

Gross profit/total revenue*100

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Q

Working capital

A

Current assets- current liabilities

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Q

Commission

A

Sales*commission rate/100

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Q

Average Rate of Return

A

Average annual profit/ initial investment *100

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