Business OCR formula

Question	Answer
breakeven is when	Revenue = TC
net cash flow	cash inflows - cash outflows
closing balance	opening balance + net cash flow
Margin of safety	Current output - Breakevern output
Contribution	selling price per unit - VC
Breakevern	fixed cost ÷ contribution or fixed costs ÷ selling price per unit
Revenue	price per unit × amount of units sold
Total varible costs	Costs to make product × amount sold
Total costs	Varible costs + fixed costs
Gross profit	revenue - varible costs
Net profit	gross profit - fixed costs
Gross profit margin	(gross profit ÷ sales revenue )×100
net profit margin	(net profit ÷sales revenue)× 100
ARR	(avrage annual profit ÷ initinal capital outlay) × 100
Breakevern	total fixed costs ÷ selling price per unit
contribution per unit	selling price per unit - varible cost per unit

Resource summary

	Created by Luigi Pozella over 5 years ago