Business studies formulas 1 Flashcards
Market share
Sales of a business / total sales in the market x 100
% change
(new value - original value) / original value x 100
Price elasticity of demand
% change in quantity demanded / % change in price
Income elasticity of demand
% change in quantity demanded / % change in income
Total revenue
Selling price x number sold
Total fixed cost
All fixed costs added together
Total variable cost
Variable cost per unit x number sold
Total cost
Total fixed cost + total variable cost
Profit
Total revenue - total cost
Unit costs
Total costs / output
Contribution per unit
Selling price - variable cost per unit
Break even point
Fixed cost / contribution per unit
Margin of safety
Actual output - break even output
Total contribution
Total revenue - total variable costs
Total inflows
All inflows added together for that month
Total outflows
All outflows added together for that month
Net cash flow
Total inflows - total outflows
Opening balance
Last month’s closing balance
Closing balance
Opening balance + net cash flow
Budget variance
Actual - budget
Total revenue
Selling price x quantity sold
Cost of sales
Total variable costs of quantity sold
Gross profit
Total revenue - cost of sales
Gross profit margin %
Gross profit / revenue x 100
