Practice Flashcards: BTEC Business: Finance Calculations | Zestly

Question 1

Gross Profit Margin formula

Accepted Answer

(Gross Profit / Revenue) * 100. The common mistake is using the cost price as the denominator instead of revenue.

Question 2

Net Profit Margin formula

Accepted Answer

(Net Profit / Revenue) * 100. The common mistake is failing to subtract all operating expenses before calculating profit.

Question 3

Current Ratio formula

Accepted Answer

Current Assets / Current Liabilities. The common mistake is dividing liabilities by assets.

Question 4

Break-even point formula

Question 5

Return on Capital Employed (ROCE) formula

Question 6

Contribution per unit formula

Question 7

Margin of Safety formula

Question 8

Mark-up formula

Question 9

Net Profit formula

Question 10

Variance formula

Question 11

Total Contribution formula

Question 12

Closing Balance formula