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GCSE Edexcel - Business definations and equations > Business Equations > Flashcards

Flashcards in Business Equations Deck (15)
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1

Revenue

Revenue = Price * Quantity sold

2

Total costs

Total costs = All variable costs + All fixed costs

3

Profit

Profit = Sales Revenue - Total costs

4

Interest rate

Interest rate = Interest Paid/ amount borrowed * 100

5

Break-even quantity

Break-even quantity = Fixed costs / (Selling price - Variable Costs per unit )

6

Margin of Safety

Margin of safety = Level of output - Break-even point

7

Net cash flow

Net cash flow = Cash inflow - Cash outflow

8

Closing Balance

Closing Balance = Opening balance + Net cash flow

9

Productivity

Productivity = Output / input

10

Gross profit

Gross profit = Sales revenue - Costs of goods sold

11

Net profit

Net profit = Gross profit -Expenses

12

Net profit margin

Net profit margin = Net profit/sales revenue * 100

13

Gross profit margin

Gross profit margin = Gross profit/sales revenue * 100

14

Net profit margin

Net profit margin = Net profit / Sales Revenue

15

Average rate of return

Average rate of return = (Total profit/number of years)/ Cost of investment * 100