Business AS Formula Flashcards
Percentage
(Différence between 2 numbers ÷ original number) x 100
Total revenue
Price x quantity
PED
(%Δ quantity demanded) ÷ (%Δ in price)
IED
(%Δ quantity demanded) ÷ (%Δ in income)
Price
Unit cost + (mark up x unit cost)
Sales revenue
Price x quantity of output
Total variable cost
Variable cost per unit x output
Total cost
Fixed cost + variable cost
Average cost
Total cost ÷ output
Profit
Total revenue - total costs
Contribution per unit= unit contribution
Selling price - variable cost
Total contribution
Total revenue - total variable cost
Or
Unit contribution x number of units sold
Profit
Total contribution - fixed Costs
Break even output
Fixed costs ÷ contribution
Gross profit
Revenue - cost of sales
Operating profit margin
(Operating profit ÷ revenue) x 100%
Profit for the year (net profit) margin
(net profit before tax ÷ revenue) x 100%
Gross profit margin
(Gross profit ÷ revenue) x 100
Operating profit margin
(Operating profit ÷ revenue) x 100
Profit for the year (net profit) margin
(Net profit before tax ÷ revenue) x 100%
Current ratio
Current assets ÷ current liabilities
Acid test ratio
(Current assets - inventories) ÷ current liabilities
Capacity utilisation
(Current output ÷ maximum possible output) x 100
Net cash flow
Total cash inflows - total cash outflows
Closing balance
Net cash flow + opening balance
