AQA business AL - formulas Flashcards
profit
profit = Total revenue - Total costs
revenue / turnover
revenue = selling price x number of units sold
gross profit
sales rev - cost of sales (direct costs)
operating profit
gross profit - operating costs (indirect costs)
gross profit margin & operating profit margin
- literal definitions
gross profit/ sales rev x 100 ,, operating profit/ sales rev x 100
- for every £1 in sales the business makes x amount of gross/ operating profit
profit for the year / net profit
operating profit +/ - interest and minus debts e.g. tax
break even point
total fixed costs/ contribution per unit
contribution per unit
selling price - variable cost per unit
labour productivity
output over a specific period / number of employees
income elasticity
% change in quantity demanded / % of change in income
price elasticity
% change in quantity demanded / % change in price
output
average productivity per employee x number of employees
market capitalisation
number of shares owned by shareholders x share price
market share
sales rev of a company / sales rev of entire market x 100
labour turnover
number of staff leaving per year / average number of staff x 100
