business year 1 equations Flashcards
market share
(sales of a product or business/total market sales)x100
price elasticity of demand
%change in quantity demanded/%change in price
income elasticity of demand
%change in quantity demanded/%change in income
net cash flow
total inflows-total outflows
sales volume
total number of units sold over a period of time
sales revenue
number of units sold x unit price
total variable costs
number of units sold x variable costs per unit
total costs
fixed costs +variable costs
contribution per unit
selling price per unit- variable cost per unit
total contribution
contribution per unit x number of units sold
break-even
fixed costs/contribution per unit
variance
actual-budget
gross profit
sales revenue - cost of sales
operating profit
gross profit - overheads
net profit
operating profit +/-finance costs
