IGCSE Business Formulas

Formula for break even

• Fixed Cost/Gross Profit per unit

• Fixed Cost * Gross Profit per unit

• Fixed Cost/Variable Cost

• Fixed Cost/Output

Formula for revenue

• Price * Assets

• Price * Net Profit

• Price * Quantity Sold

• Price * Gross Profit

Formula for gross profit margin

• Gross Profit/ Price

• Gross Profit * Quantity Sold

• Gross Profit*100/Sales

• Gross Profit/Sales*100

Formula for net profit margin

• Net profit*price
  

• Net profit/ Sales*100

• Net Profit*Sales

• Net Profit/100*Revenue

Formula for current ratio

• Liabilities/Net Profit

• Current Assets/Liabilities

• Current Assets - Current Liabilities

• Current Assets*100

Formula for acid test ratio

• Current Assets + Stock/Current Liabilities

• Current Assets - Stock/Current Liabilities

Formula for return on capital employed

• Profit before tax & interest/Capital employed*100

• Profit after tax & interest/Capital employed*100

• Profit after tax/capital employed*100

Formula for gross profit

• Price * Quantity Sold

• Price - Variable Cost

• Price/ Fixed Cost

• Price/ Variable Cost

Formula for average revenue= Total cost - Outputs

• True

• False, its Total cost/Outputs

Profit= Revenue + Total cost

• True

• False, its Revenue - Cost