All Business Equations! Flashcards
What’s the equation for YED??
% change in quantity demanded / % change in income
What’s the equation for PED??
% change in quantity demanded / % change in price
(PED is always negative
What’s the equation for revenue??
Selling price x no. of units sold
What’s the equation for average total cost??
Total cost/quantity
What’s the equation for contribution??
Selling price per unit - variable cost per unit
What’s the equation for profit??
Total revenue - total cost
What’s the equation for gross profit??
GP = Revenue - Variable costs
What’s the equation for Gross profit margin??
(GP/Revenue) x 100
What’s the equation for Operating Profit??
OP = Gross profit - Fixed Costs
What’s the equation for Operating Profit margin??
(OP/Revenue) x 100
What’s the equation for net profit (profit for the year)?
Operating profit - interest
