AQA AS Key calculations and formulas Flashcards
Revenue
Number of units sold X unit price
Total costs
Fixed costs + variable costs
Profit
Total Revenue - Total costs or Total contribution - Fixed costs
Market capitalisation
Number of issued shares X current share price
Expected value
Profitability X Outcome
Net gain
Expected value - Cost of decision
Market growth
(Change in market sales over a period of time / original market sales) x 100
Sales growth
(Change in sales over a period of time / Original sales) x 100
Market share
(Sales of a product or business / Total market sales) x 100
Price elasticity of demand
% change in quantity demanded / % change in price
Income elasticity of demand
% change in quantity demanded / % change in income
Labour productivity
Output per period (units) / Number of employees
Unit costs
Total production costs / Number of units produced
Capacity utilisation
(Actual level of output / Maximum possible output) x 100
Variance
Actual - budget
Contribution per unit
Selling price per unit - Variable cost per unit
Total contribution
Contribution per unit x number of units sold
Break-even
Fixed costs / Contribution per unt
Gross profit margin
(Gross profit / Sales Revenue) x 100
Operating profit margin
(Operating profit / Sales revenue) x 100
Profit for the year margin
(Profit for the year / Sales revenue) x 100
Net cash flow
Total inflows - Total outflows
Labour turnover
(number of employees leaving during period / number of employees employed during the period) x 100
Retention rates
(number of employees during period - number of leavers per period ) / number of employees during period x 100
Labour productivity
Output per period (units) / Number of employees
Employee costs as a % of turnover
(Total employee cost / Total Turnover) x 100
Labour cost per unit
Labour cost / units produced
