Business Equations Flashcards
Revenue (sales or turnover)
Selling price x Quantity sold
Variable Costs
Variable cost per unit x Number of units sold
Total Costs
Fixed costs + Variable costs
Profit
Total Revenue - Total costs
or
Total Contribution - Fixed costs
Market capitalisation of a business
Number of issued shares x Current share price
Net gain
Expected value - Initial cost of decisions
Market growth (%)
change in size of market over period of time
___________________________________ x 100
Original size of the Market
Market share (%)
Sales of one product OR Brand OR Business
___________________________________ x 100
Total sales in the market
Labour productivity
output over a time period
____________________
Number of employes
Unit Cost
Total costs
________________
Number of units
Capacity utilisation (%)
Actual output
_____________________ x 100
Maximum possible output
Return on investment (ROI %)
Profit from investment
_________________ x 100
Cost of investment
Gross profit
Revenue - Cost of sales
Profit from operations
Gross profit - Operating expenses
Profit for year
(Operating profit + Profit from other activities) - (Net finances - Tax)
