Revision topic Unit 2 Resit - Nine Key Equations

Hi All

these are the main equations that you will need to remember for the  online assessment :

• Total Costs = Variable costs + Fixed costs

• Variable Costs = Cost of unit x number of units sold

• Revenue = Quantity of units sold x unit selling price

• Profit = Total revenue - total expenditure

• Break even point   =             Fixed costs 

                                             Selling price - variable cost

• Net cash flow = total inflow  - total outflow

• Closing balance = net cash flow plus opening balance

• Gross Profit = Revenue - cost of sales

• Net Profit = Gross Profit - other expenditure

• Working Capital (Net Current Assets) = Current Assets - Current liabilities

Good Luck and do well

Mr T