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Flashcards in Finance Formulas Deck (14)
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1

Revenue

Sale price x quantity sold

2

Profit

Revenue - total costs

3

Total costs

Fixed costs + variable costs

4

Average costs

Total costs/units sold

5

Gross profit

Revenue - cost of goods

6

Net profit

Gross profit - expenses

7

Gross profit margin

(Gross profit/revenue) x 100

8

Net profit margin

(Net profit/revenue) x 100

9

Break-even point

Fixed costs/(selling price-variable unit cost)

10

Margin of safety

Actual sales - break-even sales

11

Closing balance

Net cash flow + opening balance

12

Opening balance

Closing balance of year before

13

Net cash flow

Total revenue-total expenses

14

Market share formula

(Sales of business/total sales in market) x 100