Business Formulas (Paper 1) Flashcards
Market Share? (%)
Business Sales/Market Sales x 100
Market Size? (£)
Total value of all business sales
Market Growth? (%)
Change/Original x 100
(finding % change)
Total Costs? (£)
Total Fixed costs + Total variable costs
Total Variable Costs? (£)
Variable cost per unit x Number of units sold
Revenue? (£)
Selling price x Quantity sold
Profit? (£)
Total revenue - Total costs
Break Even? (Units)
Fixed Costs/Contribution
Contribution per unit? (£)
Selling price - Variable cost
Total Contribution? (£)
Total revenue - Total variable cost
OR
Contribution per unit x Number of units
Margin of Safety? (Units)
Actual level of output - Break even output
Net Cash Flow? (£)
Inflows - Outflows
Gross Profit? (£)
Sales revenue - Cost of Sales (Direct costs e.g. stock/raw materials)
Net Profit? (£)
Gross profit - expenses
OR
(Sales revenue - Cost of sales - Expenses)
Gross Profit Margin? (%)
Gross profit/Revenue x 100
Net Profit Margin? (%)
Net Profit/Revenue x 100
Labour Turnover? (%)
Number of leavers/ Average number of employees x 100
Labour Productivity? (per worker)
Output per time period/ Number of employees per time period
Added Value? (£)
Selling price - Cost of raw materials
Capacity Utilisation? (%)
Actual Output/Maximum possible output
x 100
Lead Time? (time)
Time difference between re-order quantity and stock increase
Re-order Quantity?
Increase in stock level when delivery is received
