business paper 2 Flashcards
what’s the calculation for sales revenue
selling price x quantity sold
what’s the sales volume calculation
sales revenue/price
total variable cost formula
total costs-fixed costs
total fixed costs
total costs - variable costs
gross profit calculation
sales revenue - cost of goods sold
how to calculate margin of safety
actual output - break even output
profit margin
(any profit/sales revenue) x100
working capital
current assets-current liabilities
what’s the contribution per unit formula
selling price per unit - variable costs
break even
fixed costs/contribution per unit
what’s over trading
when a business grows to quick and doesn’t have the financial resources
what’s the gearing ratio
non current liabilities/capital employed
how to work out capital employed
total equity + non current liabilities
what’s the difference between strategic and tactical decisions
Strategic is decisions that will effect the business long term whereas tactical is in the short term
what are kay’s distinctive capabilities
Architecture
Reputation
Innovation
