Distinction BTEC Business Unit 3 Formulae With Complete Solutions. Graded A+

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)