Unit 3 Personal and Business Finance Calculation

UNIT 3 Business Finance Calculation

E1 Cash Flow Forecast


Net cash flow Total income - total expenditure
Closing balance Opening balance + net cash flow

, E2 Break-Even Analysis


Total revenue Selling price x quantity sold
Total cost Total fixed costs + total variable costs
Profit Total revenue - total costs
Total contribution Sales revenue - total variable costs
Contribution per unit Selling price - variable cost (per unit)
Profit (using Contribution per unit x margin of safety
contribution)
Break-even output Total fixed costs ÷ contribution per unit
Margin of safety (units) Actual sales - breakeven outpost
Margin of safety Margin of safety (units) x selling price per unit
(value)