BTEC Business Formulas

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 liabilities Net 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 Net profit margin - Answer - net profit/revenue x 100 return on capital employed