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6 Cards in this Set
- Front
- Back
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What is the formula for GROSS profit?
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Gross Profit = Sales – Cost of goods sold only.
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What is the formula for NET profit
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TOTAL revenue - TOTAL costs
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What is the formula for Return On Capital Employed?
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Profit/Capital Employed x 100
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What are fixed costs?
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set costs that don't change with output. e.g. rent
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What are variable costs?
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costs that change with output, e.g. raw materials
this means one season costs can go up if it is popular |
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How to improve cash flow
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.decrease outflows - lower variable costs, move to cheaper location
.increase inflows - increase selling price, promotion, etc |
