Btec Business - Unit 3 Formulae 22 Correctly Answered Questions Latest Update

Net profit margin {Ans: Net profit / revenue x 100}Margin of safety {Ans: Actual output - breakeven output}Payables days {Ans: Payables / credit purchases x 365}Breakeven formula {Ans: FC / (SP - VC)}Inventory turnover {Ans: Average inventory / cost of sales x 365}Gross profit margin {Ans: Gross profit / revenue x 100}Breakeven point {Ans: TR = TC}Net cash flow {Ans: Receipts - payments}Total cost {Ans: FC + (VC x Q)}Closing balance {Ans: Opening balance + net cash flow}Total Revenue {Ans: Price x Quantity}Contribution per unit {Ans: SP - VC}Total contribution {Ans: Total revenue - total variable cost}Return on capital employed {Ans: Net profit / capital employed x 100}Profit {Ans: Total revenue - total cost}Gross profit {Ans: Revenue - cost of sales}Net profit {Ans: Gross profit - expenses}Working capital (net current assets) {Ans: Current assets - current liabilities}Depreciation (straight line method) {Ans: (Historic cost - residual value) / expected life in years}Liquid capital ratio (acid test) {Ans: Current assets - inventory / current liabilities}