BTEC Business Formulas Questions and Answers(A+ Solution guide)

Net Cash Flow - Answer-Total inflows - total outflows Closing balance - Answer-Opening balance + net cash flow Sales revenue - Answer-price x quantity sold Variable costs - Answer-cost per unit x quantity made Total costs - Answer-fixed costs + variable costs Profit - Answer-sales revenue - total costs Break even point - Answer-Fixed costs / contribution per unit Contribution per unit - Answer-Selling price - variable cost per unit Total contribution - Answer-Sales revenue - total variable costs Margin of Safety - Answer-Actual sales - break even level of output Costs of goods sold - Answer-Opening inventory + purchases - closing inventory Gross profit - Answer-sales turnover - cost of goods sold Net profit - Answer-gross profit - expenses + other revenue income straight line depreciation - Answer-historic value - residual value / expected life Working Capital - Answer-current assets - current liabilitiesNet assets - Answer-fixed assets + current assets - (current liabilities + long term liabilities) Capital employed - Answer-owners/shareholders capital + retained profit - drawings Gross profit margin - Answer-Gross profit/sales revenue x 100 Mark-up - Answer-Gross profit / cost of sales x 100