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USEFUL EQUATIONS Future Value= PV (1 + i)n Present Value= F…

USEFUL EQUATIONS Future Value= PV (1 + i)n Present Value= FV / (1 + i)n Payback Period= Original Cost / Expected annual net cash revenue  Simple Rate of Return= average annual net revenue/ initial cost  Net Present Value (NPV)= P1 / (1+i)1 + P2 / (1+i)2+ P3 / (1+i)3- C  Current Ratio= Current Assets / Current Liabilities  Working Capital= Current Assets – Current Liabilities Debt to Asset Ratio= Total Liabilities / Total Assets Equity to Asset Ratio= Total Equity / Total Assets Debt to Equity Ratio (Leverage Ratio)= Total Liabilities / Total Equity Debt Structure Ratio: Current Liabilities / Total Liabilities Valuation Equity: Book Value – Market Value ROA= Return to Assets / Average Assets ROE= Return to Equity / Average Equity Operating Profit Margin Ratio (OPM): Operating Profit / Gross Revenue Average Physical Product (APP)= Total Physical Product / Input Level Marginal Physical Product (MPP)= Δ Total Physical Product / Δ Input Level Total Cost (TC)= Fixed Costs + (Variable Input Level * Variable Input Cost) Total Revenue (TR)= Total Physical Product * Price Profit= Total Revenue – Total Cost Marginal Revenue (MR)= Δ Total Revenue / Δ Total Physical Product Marginal Cost (MC)= Δ Total Cost / Δ Total Physical Product Marginal Value Product (MVP)= Δ Total Value Product / Δ Input Level Total Value Product (TVP)= Total Physical Product * Product Selling Price Marginal Input Cost (MIC)= Δ Total Input Cost / Δ Input Level Total Input Cost (TIC)= Input Level * Input Price  Average Asset Value = Purchase Price + Salvage Value / 2 Total Fixed Cost (TFC)= Add all fixed costs together Average Fixed Cost (AFC)= Total Fixed Cost / output Total Variable Cost (TVC)= Add all individual variable costs Average Variable Cost (AVC)= Total Variable Cost / Output Total Cost (TC)= Total Fixed Cost + Total Variable Cost Average Total Cost (ATC)= Total Cost / Output Marginal Cost= Δ Total Cost / Δ Output OR Δ Total Variable Cost / Δ Output Revenue= Sales Price Per Case x Total Cases Contribution Margin= Revenue – Total Variable Costs Net Income= Contribution Margin – Total Fixed Costs Contribution Margin per Unit= Contribution Margin / Total Cases Break-even Point per Unit= Fixed Costs / Contribution Margin per Unit Operation Leverage= Total Contribution Margin / Total net Operating Profit Contribution Margin Ratio= Contribution Margin / Sales Required Sales= Fixed Costs + Target Profit / Contribution Margin Ratio Straight-Line Depreciation= (Book Value – Salvage Value) / Useful Life Declining Balance Depreciation= Beginning Year Book Value * R R= 100 / Useful Life