Business paper 2 : Calculations Flashcards
Contribution
Selling price per unit - variable costs per unit
Budget variance
Actual figure - budgeted figure
Break even output
Total fixed costs / contribution per unit
Margin of safety
Current sales output / output - break even output
Current ratio
Current assets/ current liabilities
Acid ratio
Current assets - stock / current liabilities
Working capital
Total assets - total liabilities
Productivity
Output per time period / number of employees
Capacity utilisation
Actual output / maximum output x 100
Total capital employed
Total equity + non current liabilities
Gearing ratio
Non current liabilities / total capital employed x 100
ROCE
operating profit / total capital employed x 100
Absenteeism
Total number absent per period / average number employed per period x 100
Labour turnover rate
Total number of employees leaving per period / average number of employees per period
Labour retention rate
Total number of employees remaining / average number of employees x 100
