Business formula for paper 1

Question 1

Formula for % change

Answer 1

(New value - old value) / original value x 100

Question 2

How to calculate unit costs?

Answer 2

Total cost ÷ output

Question 3

How to calculate interest %?

Answer 3

(total repayment - borrowed amount) /borrowed amount x 100

Question 4

How to calculate total revenue?

Answer 4

selling price x number sold

Question 5

How to calculate total fixed costs?

Answer 5

All fixed costs added together.

Question 6

How to calculate total variable costs?

Answer 6

Variable costs per unit x number sold

Question 7

How to calculate total costs?

Answer 7

Total fixed cost + total variable costs

Question 8

How to calculate profit?

Answer 8

Total revenue - total cost

Question 9

How to calculate contribution per unit?

Answer 9

Selling price - variable cost per unit

Question 10

How to calculate Break Even Point in units?

Answer 10

Fixed cost ÷ Contribution per unit

Question 11

How to calculate Break even point in currency?

Answer 11

Break even point in units x sales prices

Question 12

How to calculate the margin of safety?

Answer 12

Actual Output – Break Even output

Question 13

How to calculate total contribution?

Answer 13

Total revenue – total variable costs

Question 14

Total Inflows/ Total Income

Answer 14

All inflows/ income added together for that month

Question 15

Total Inflows/ Total Income

Answer 15

All inflows/ income added together for that month

Question 16

Total Outflows/ Total Expenditure

Answer 16

All outflows/ expenditure added together for that month

Question 17

Net Cash Flow

Answer 17

Total inflows/income – Total outflows/expenditure

Question 18

Opening Balance

Answer 18

Last month’s closing balance

Question 19

Closing Balance

Answer 19

Opening Balance + Net Cash Flow