MATH 1010

Final Exam Formulas

Unit 3:
N – Net price N = L (1 – d)

L – List price N = L (1 – d1) (1 – d2) (1 – d3)

d – Trade discount rate (%)

Equivalent Discount rate
(1 – de) = (1 – d1) (1 – d2) (1 – d3)… (1 – dn)
D – Amount of Markdown

S – selling Price
Equivalent discount rate
𝑳𝒊𝒔𝒕 𝑷𝒓𝒊𝒄𝒆 − 𝑵𝒆𝒕 𝑷𝒓𝒊𝒄𝒆
= × 𝟏𝟎𝟎%
𝑳𝒊𝒔𝒕 𝑷𝒓𝒊𝒄𝒆

𝑺(𝒓𝒆𝒅𝒖𝒄𝒆𝒅) – reduced Selling Price (S) = Cost (C) + Markup (M)

selling price
Markup (M) = Expenses (E) + Profit (P)

Selling Price (S) = Cost (C) + Expenses (E) +

Profit (P)

𝑴
Rate of Markup on Cost = × 𝟏𝟎𝟎%
𝑪

𝑴
Rate of Markup on Selling Price = × 𝟏𝟎𝟎%
𝑺

𝑫
Rate of Markdown (d) = × 𝟏𝟎𝟎%
𝑺

𝑺(𝒓𝒆𝒅𝒖𝒄𝒆𝒅) = 𝑺 (1 − 𝑹𝒂𝒕𝒆 𝒐𝒇 𝒎𝒂𝒓𝒌𝒅𝒐𝒘𝒏)

Unit 4:

S – Selling Price 𝐓𝐑 = 𝐒(𝐱)

VC – Variable Cost per Unit

FC – Fixed Cost 𝐓𝐂 = 𝐕𝐂(𝐱) + 𝐅𝐂

TVC – (Total) Variable Cost

𝑻𝑽𝑪
TR – Total Revenue
𝑽𝑪 =
𝒙

TC – Total Cost
𝐍𝐈 = (𝐒 − 𝐕𝐂)𝒙 − 𝐅𝐂
NI – Net Income

x – Units Sold/Produced

CM – Contribution Margin 𝐅𝐂 𝐅𝐂
𝒙 𝐚𝐭 𝐛𝐫𝐞𝐚𝐤 𝐞𝐯𝐞𝐧 = =
(𝐒−𝐕𝐂) 𝐂𝐌

CM = S - VC

Capacity utilization
𝐀𝐜𝐭𝐮𝐫𝐚𝐥 𝐥𝐞𝐯𝐞𝐥 𝐨𝐟 𝐨𝐮𝐭𝐩𝐮𝐭
= X 100%
𝐌𝐚𝐱𝐢𝐦𝐮𝐦 𝐩𝐨𝐬𝐬𝐢𝐛𝐥𝐞 𝐨𝐮𝐭𝐩𝐮𝐭