business formulas Flashcards
What is the formula for Contribution per Unit?
Contribution per Unit = P - AVC
How is Total Contribution calculated?
Total Contribution = TR - VC
What is the formula for calculating Contribution?
Contribution = (P - AVC) × Q
How do you calculate Profit?
Profit = Total Contribution - FC
What is the Break-even Quantity (BEQ) formula?
Break-even Quantity (BEQ) = FC / (P - AVC)
How is Margin of Safety determined?
Margin of Safety = Current Output - Break-even Output
What is the formula for Target Profit Output (TP)?
Target Profit Output (TP) = (FC + TP) / Contribution per Unit
What is the formula for Target Price?
Target Price = AFC + AVC
How is Target Profit calculated?
Target Profit = (TPO × contribution per unit) - FC
What is the formula for Annual Depreciation?
Annual Depreciation = (Original Cost - Residual Value) / Expected Useful Life of Asset
How is Units of Production Rate calculated?
Units of Production Rate = (Cost of Asset - Salvage Value) / Estimated Units of Production
What is the formula for Depreciation Expense per Unit?
Depreciation Expense per Unit = Units Produced × Units of Production Rate
How do you calculate Payback Period?
Payback Period = Initial Investment Cost / Annual Cash Flow from Investment
What is the formula for Annual Rate of Return (ARR)?
ARR (%) = (Annual Cash Flow / Initial Investment) × 100
How is Market Share calculated?
Market Share = (Firm Sales / Total Market Sales) × 100
What is the formula for Market Growth (%)?
Market Growth (%) = [(Market Size This Year - Market Size Last Year) / Market Size Last Year] × 100
What is Price Elasticity of Demand?
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
How do you calculate Debtor Rate (%)?
Debtor Rate (%) = (Number of Invoices on Time / Total Output) × 100
What is the formula for Labour Productivity?
Labour Productivity = Total Output / Total Units Worked
How is Working Capital defined?
Working Capital = Current Assets - Current Liabilities
What is the formula for Working Capital Productivity (%)?
Working Capital Productivity (%) = (Sales Revenue / Working Capital) × 100
How is Operating Leverage calculated?
Operating Leverage = Q × (P - AVC) - FC
What is the alternative formula for Operating Leverage?
Operating Leverage = Total Contribution / FC
What does CTB stand for in financial calculations?
CTB = P × Q
What does CTM represent?
CTM = FC + VC
