Business formulae Flashcards
Sales revenue/income/sales income/revenue
Selling price per item x number sold
Total variable costs
Variable cost per item x number sold
Total costs
Fixed costs + total variable costs
Profit
Sales revenue – total costs
Cost per unit
Total costs ÷ number sold
Percentage change
Change (difference) ÷ original amount *100
Market share
Business’ sales ÷ total market sales *100
Market growth
Change in market size ÷ original market size *100
Total inflows
Add all inflows
Total outflows
Add all outflows
Net cash flow
Cash inflows – cash outflows
Opening balance
Closing balance of previous month
Closing balance
Opening balance + net cash flow
Net assets
(Current assets + non-current assets) – (Current liabilities + non-current liabilities)
Average rate of return
Average yearly profit/cost of investment *100
1) Calculate average yearly profit: Total profits ÷ number of years
2) Average RoR: average yearly profit/cost of investment *100
