Distinction BTEC Business Unit 3 Formulae With
Complete Solutions
Graded A+
QUESTIONS AND ANSWERS
Total Revenue. ANSWER - Price x Quantity
Working capital (net current assets). ANSWER - Current assets - current liabilities
Current ratio. ANSWER - Current assets / current liabilities
Liquid capital ratio (acid test). ANSWER - Current assets - inventory / current liabilities
Profit. ANSWER - Total revenue - total cost
Breakeven formula. ANSWER - FC / (SP - VC)
Contribution per unit. ANSWER - SP - VC
Margin of safety. ANSWER - Actual output - breakeven output
Net cash flow. ANSWER - Receipts - payments
Closing balance. ANSWER - Opening balance + net cash flow
Total contribution. ANSWER - Total revenue - total variable cost
Breakeven point. ANSWER - TR = TC
Total cost. ANSWER - FC + (VC x Q)
Complete Solutions
Graded A+
QUESTIONS AND ANSWERS
Total Revenue. ANSWER - Price x Quantity
Working capital (net current assets). ANSWER - Current assets - current liabilities
Current ratio. ANSWER - Current assets / current liabilities
Liquid capital ratio (acid test). ANSWER - Current assets - inventory / current liabilities
Profit. ANSWER - Total revenue - total cost
Breakeven formula. ANSWER - FC / (SP - VC)
Contribution per unit. ANSWER - SP - VC
Margin of safety. ANSWER - Actual output - breakeven output
Net cash flow. ANSWER - Receipts - payments
Closing balance. ANSWER - Opening balance + net cash flow
Total contribution. ANSWER - Total revenue - total variable cost
Breakeven point. ANSWER - TR = TC
Total cost. ANSWER - FC + (VC x Q)