AS-level key calculations and formulas

Question 1

Percentage change

Answer 1

Difference
—————- x 100
original

Question 2

Revenue

SP X O

Answer 2

sale price X output

Question 3

Total costs

FC + TVC

Answer 3

fixed costs + total variable costs

Question 4

Profit

TR - TC

Answer 4

total revenue - total costs

Question 5

Market capitalisation
(CSHAREP X NOS)

Answer 5

current share price
X
number of outstanding shares

Question 6

Gross profit

SR - COS

Answer 6

sales revenue- cost of sales

Question 7

Operating profit

Answer 7

sales revenue - (cost of sales- operating expenses)

Question 8

Profit for the year

OP - costs

Answer 8

operating profit - (net finance or admin costs + tax)

Question 9

Expected value

Answer 9

probability X outcome

Question 10

Net gain

EO - COD

Answer 10

expected outcome - cost of decision

Question 11

Market growth

Answer 11

change in sales over a period
of time
—————————————— X 100
original market sales

Question 12

Sales growth

CIS OAPOT
———– X 100
OS

Answer 12

change in sales over a period
of time
———————————— X 100
original sales

Question 13

Market share

Answer 13

sales of a product or
business
———————- x 100
total market sales

Question 14

Price elsatiticty of demand

Answer 14

% change in quantity
demanded
————————– X 100
change in price

Question 15

Income elasticity of demand

Answer 15

% change in quantity
demanded
——————— X 100
% change in income

Question 16

Labour productivity

OPP divided by NOE

Answer 16

output per period
divided by
number of employees

Question 17

Unit costs

NOUP

TPC divided by NOUP

Answer 17

total production costs

number of units produced

Question 18

Capacity utilisation

ALO MPO X 100

Answer 18

actual level of output
—————————– X 100
maximum possible output

Question 19

Variance

Answer 19

Actual - budget

Question 20

Contribution per unit

SPPU- VCPU

Answer 20

selling price per unit - variable cost per unit

Question 21

Total contribution

CPU x NOUS

Answer 21

contribution per unit X number of units sold

Question 22

Break even output

fc divided by cpu

Answer 22

fixed costs
divided by
contribution per unit

Question 23

Gross profit margin

gp divided by sr x 100

Answer 23

gross profit
——————— X 100
sales revenue

Question 24

Operating profit margin

OP divided by SR x 100

Answer 24

operating profit
———————— X 100
sales revenue

Question 25

Net cash flow | IF - TO

Answer 25

total inflows - total outflows

Question 26

Labour turnover | NOEL divided by NEE x 100

Answer 26

number of employees leaving during period ----------------------------------- X100 number of employees employed during period

Question 27

Employee costs as a % of turnover | TEC. divided by TT x 100

Answer 27

total employee costs ----------------------------- X 100 total turnover

Question 28

Labour costs per unit

Answer 28

Labour cost DIVIDED BY units produced

Question 29

Return on investment

Answer 29

operating profit ---------------------- X 100 capital invested

Question 30

The debt/ equity ratio

Answer 30

debt --------- X 100 equity