Business formulas Flashcards
What is the formula for profit?
Revenue - Total Cost
What is the formula for revenue/Turnover?
Price X Quantity Sold
What is the formula for total cost?
Fixed Cost + Variable Cost
What is the formual for Total variable costs?
Variable Costs per unit X Nb of units sold
What is the formula for market growth (%)?
(Change in size of market over a period/Original size of market) X 100
What is the formula for market share (%)?
(Sales of one product OR brand OR business/Total sales in market) X 100
What is the formula for sales growth (%)?
(Sales this year-Sales last year/Sales alast year) X 100
What is the formula for price elasticity of demand?
%Change in quantity demanded/%Change in price
What is the formula for Income elasticity of demand?
%Change in quantity demanded/%Change in real income
What is the formula for capacity utilisation (%)?
(Actual output/maximum possible output) X 100
What is the formula for unit costs (average costs)?
Total costs/Number of units of output
What is the formula for labour productivity?
Output over a time period/Number of employees
What is the formula for return on investment (%)?
(Profit from the investment/cost of the investment) X 100
What is the formula for the % change in profit?
(This years profit-Last years profit/Last years profit) X 100
What is the formula for operating profit?
Gross profit-expenses
What is the formula for profit of the year?
All profit-financial expenses