calculation formulas Flashcards
variable costs ( change with output )
output x variable cost per unit
total costs
variable costs + fixed costs
revenue
selling price x quantity sold
unit costs
total costs/number of units
profit
revenue - total costs ( OR contribution - total costs )
market capitalisation
current share price x number of shares sold
expected value
Probability x outcome
net gain
expected value - cost of decision
sales volume
number of items sold
sales value
volume x selling price
market growth
(% change in the market size) = market size in year - market size previous year/original market size x 100
sales growth
Change in market sales over a period of time/ original market sales x 100
market share
sales of one product/total sales in market x 100
price elasticity of demand (PED)
% change in quantity demanded/% change in price
Income elasticity of demand (YED)
% change in quantity demanded/% change in price
unit costs
total costs/total outputs
labour productivity
output per period/number of employees per period
labour productivity
output per period/number of employees per period
capacity
maximum level of production
capacity utilisation
actual output/maximum possible output x 100
variance
actual - budget
contribution
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
margin of safety
actual output - breakeven output
gross profit
sales revenue - cost of sales
gross profit margin
gross profit/sales revenue x 100
operating profit
gross profit - expenses
operating profit margin
operating profit/sales revenue x 100
profit for the year margin
profit for the year/sales revenue x 100
ROI
operating profit/capital employed x 100
net cash flow
total inflows - total outflows
closing balance
opening balance/net cash flow
employee costs as a % of turnover
employee costs/sales revenue x 100
labour turnover
number of employees leaving in period/average number employed in period x 100
labour costs per unit
total labour costs/total units of output x 100
retention rate
number of employees with 1 or more years of service/overall employee numbers x 100
