AQA AS Key calculations and formulas

Question 1

Revenue

Answer 1

Number of units sold X unit price

Question 2

Total costs

Answer 2

Fixed costs + variable costs

Question 3

Profit

Answer 3

Total Revenue - Total costs or Total contribution - Fixed costs

Question 4

Market capitalisation

Answer 4

Number of issued shares X current share price

Question 5

Expected value

Answer 5

Profitability X Outcome

Question 6

Net gain

Answer 6

Expected value - Cost of decision

Question 7

Market growth

Answer 7

(Change in market sales over a period of time / original market sales) x 100

Question 8

Sales growth

Answer 8

(Change in sales over a period of time / Original sales) x 100

Question 9

Market share

Answer 9

(Sales of a product or business / Total market sales) x 100

Question 10

Price elasticity of demand

Answer 10

% change in quantity demanded / % change in price

Question 11

Income elasticity of demand

Answer 11

% change in quantity demanded / % change in income

Question 12

Labour productivity

Answer 12

Output per period (units) / Number of employees

Question 13

Unit costs

Answer 13

Total production costs / Number of units produced

Question 14

Capacity utilisation

Answer 14

(Actual level of output / Maximum possible output) x 100

Question 15

Variance

Answer 15

Actual - budget

Question 16

Contribution per unit

Answer 16

Selling price per unit - Variable cost per unit

Question 17

Total contribution

Answer 17

Contribution per unit x number of units sold

Question 18

Break-even

Answer 18

Fixed costs / Contribution per unt

Question 19

Gross profit margin

Answer 19

(Gross profit / Sales Revenue) x 100

Question 20

Operating profit margin

Answer 20

(Operating profit / Sales revenue) x 100

Question 21

Profit for the year margin

Answer 21

(Profit for the year / Sales revenue) x 100

Question 22

Net cash flow

Answer 22

Total inflows - Total outflows

Question 23

Labour turnover

Answer 23

(number of employees leaving during period / number of employees employed during the period) x 100

Question 24

Retention rates

Answer 24

(number of employees during period - number of leavers per period ) / number of employees during period x 100

Question 25

Labour productivity

Answer 25

Output per period (units) / Number of employees

Question 26

Employee costs as a % of turnover

Answer 26

(Total employee cost / Total Turnover) x 100

Question 27

Labour cost per unit

Answer 27

Labour cost / units produced