Unit Financial Formulas and Ratios

Front

What is the formula for Total Revenue or Sales?

Back

Total Revenue or Sales = Number of Sales x Price per Unit

Front

How do you calculate Total Variable Costs?

Back

Total Variable Costs = Number of Units x Cost of One Unit

Front

What is the formula for Total Costs?

Back

Total Costs = Fixed Costs + Total Variable Costs

Front

How is the Break Even Point calculated?

Back

Break Even Point = Fixed Costs / Contribution per Unit

Front

What is the formula for Contribution per Unit?

Back

Contribution per Unit = Selling Price per Unit – Variable Cost per Unit

Front

How do you calculate Margin of Safety?

Back

Margin of Safety = Predicted Sales – Breakeven Point

Front

What is the formula for Profit?

Back

Profit = Total Revenue – Total Costs or Contribution per Unit x Margin of Safety

Front

How is Total Contribution calculated?

Back

Total Contribution = Contribution per Unit x Number of Unit or Total Revenue – Total Variable Costs

Front

What is the formula for Net Cash Flow?

Back

Net Cash Flow = Total Inflows – Total Outflows

Front

How do you calculate Closing Balance?

Back

Closing Balance = Opening Balance + Net Cash Flow