Business Formula test - theme 1 Flashcards
Market Share
Sales of a product or business/Total market shares x100
Market Growth
Market size (new) - Market size (old)
/Market size (old) x100
Price Elasticity of Demand
% Change in quantity demand /
% Change in price
Income elasticity of Demand
% Change in quantity Demanded /
% Change in income
Net Cash Flow
Total Inflows - Total outflows
Sales Volume (definition)
Total number of units sold over a period of time
Sales Revenue
total units sold x unit price
Total Variable Costs
number of units sold x variable cost per unit
Total Costs
Fixed costs + Variable costs
Contribution per unit
Selling price per unit - Variable cost per unit
Total contribution
Contribution per unit x number of units sold
Break even
Fixed costs / Contribution per unit
Margin of Safety
Actual Sales / Output - Break even output
Variance
Actual - Budget
Gross Profit
Sales revenue - Cost of sales
