All Calculations

Question 1

Market Capitalisation =

Answer 1

Share Price (per share) x Number of Shares

Question 2

Total Revenue =

Answer 2

Volume sold x Average Selling price

Question 3

Price Elasticity of Demand (P.E.D) =

Answer 3

% Change in Price

Question 4

Labour Productivity Formula =

Answer 4

Number of Employees at Work

Question 5

Profit =

Answer 5

Total Sales Revenue - Total Costs

Question 6

Income Elasticity of Demand (Y.E.D) =

Answer 6

% Change in Income

Question 7

Capacity Utilisation Formula =

Answer 7

Actual Level of Output
————————————– x 100
Maximum Possible Output

Question 8

Creditor Days =

Answer 8

Trade Payables
———————- x 365
Cost of Sales

Question 9

Current Ratio =

Answer 9

Current Liabilities

Question 10

Gearing Ratio (%) =

Answer 10

Long-term liabilities
—————————– x 100
Capital employment

Question 11

Total Costs =

Answer 11

Fixed Costs + Variable Costs

Question 12

Debtor Days =

Answer 12

Trade Debtors
——————— x 365
Revenues

Question 13

Labour Turnover Formula =

Answer 13

Number of Employees Leaving During Period
—————————————————————— x 100
Average Number Employed During Period

Question 14

Return on Capital Employed ( ROCE %) =

Answer 14

Operating Profit
————————– x 100
Capital Employed

Question 15

Sales Growth (%) =

Answer 15

Sales this year - Sales last year
——————————————— x 100
Sales last year

Question 16

Added Value =

Answer 16

Sales Revenue - Cost of Brought-In Goods and Services

Question 17

Unit Cost =

Answer 17

Units Output

Question 18

Return on Investment (%) =

Answer 18

Return on Investment (£)
———————————– x 100
Cost of Investment (£)

Question 19

Percentage Chance in Profit =

Answer 19

Current Year’s Profit - Previous Year’s Profit
————————————————————– x 100
Previous Year’s Profit

Question 20

Gross Profit =

Answer 20

Sales Revenue - Cost of Sales

Question 21

Operating Profit =

Answer 21

Sales Revenue - Cost of Sales - Operating Profit

Question 22

Profit for the Year =

Answer 22

Operating Profit + Other Profit - Net Finance Costs - Tax

Question 23

Gross Profit Margin (%) =

Answer 23

Gross Profit
——————— x 100
Sales Revenue

Question 24

Operating Profit Margin (%) =

Answer 24

Operating Profit
———————— x 100
Sales Revenue

Question 25

Profit for the Year Margin (%) =

Answer 25

Profit for the Year
————————- x 100
Sales Revenue

Question 26

Contribution Per Unit =

Answer 26

Selling Price Per Unit - Variable Cost Per Unit

Question 27

Total Contribution =

Answer 27

Total Revenue - Total Variable Costs

Question 28

Labour Cost Per Unit =

Answer 28

Units of Outputs

Question 29

Employee Costs as a % of Turnover =

Answer 29

Employee Costs
———————— x 100
Sales Turnover

Question 30

Labour Retention (%) =

Answer 30

Number of Staff Employed at End of Period - Number of Leavers
————————————————————————- x 100
Number of Staff Employed at End of Period

Question 31

Stock Turnover =

Answer 31

Average Stock Held