Calculations

Question 1

Total costs

Answer 1

Total Costs = Fixed costs + Variable Costs

Question 2

Profit

Answer 2

Profit = total revenue - total costs

Question 3

(Total) Variable costs

Answer 3

(Total) Variable costs = variable cost per unit x number of units sold

Question 4

Total revenue (sales revenue / turnover)

Answer 4

Total revenue = selling price per unit x number of units sold

Question 5

Market capitalisation

Answer 5

Current share price x number of total shares

Question 6

Sales Growth

Answer 6

Change in sales / previous sales x 100

Question 7

Market share (%)

Answer 7

Company sales over a period of time/ total sales of the industry x 100

Question 8

Labour productivity

Answer 8

Number of units made / number of employees

Question 9

Unit costs

Answer 9

(Variable costs + fixed costs) / total units produced

Question 10

Capacity utilisation

Answer 10

Actual output / maximum output possible x 100

Question 11

Gross profit

Answer 11

Revenue - cost of sales

Question 12

Operating profit

Answer 12

Gross profit - operating expenses

Question 13

Profit for the year

Answer 13

(Total revenue - cost of goods sold) / total revenue x 100

Question 14

Contribution per unit

Answer 14

Selling price per unit - variable cost per unit

Question 15

Total contribution

Answer 15

Price per unit - variable cost per unit

Question 16

Break-even output

Answer 16

Fixed costs / (sales price per unit - variable cost per unit)

Question 17

Margin of safety

Answer 17

(Current sales - break-even point) / current sales

Question 18

Operating profit margin

Answer 18

Operating profit / sales revenue x 100

Question 19

Labour turnover (%)

Answer 19

Number of employees who have left in a period of time / number of total employees in a period of time x 100

Question 20

Employee retention rate (%)

Answer 20

Number of employees at the end of the year - number pf leavers / number of employees at the end of the year x 100

Question 21

Employee costs as a % of turnover

Answer 21

Employee costs / sales turnover x 100

Question 22

Labour cost per unit

Answer 22

Total labour cosy / total level of output

Question 23

Gross profit margin (%)

Answer 23

Gross profit / sales revenue x 100

Question 24

Return on investment

Answer 24

Return on investment / cost of investment x100

Question 25

Average rate of return (%)

Answer 25

Net return from project or number of years / initial cost of project x 100

Question 26

Inventory turnover

Answer 26

Cost of goods sold / average inventories held

Question 27

Return on capital employed (%)

Answer 27

Operating profit / total equity + non-current liabilities x 100

Question 28

Labour cost per unit

Answer 28

Labour costs / units of output

Question 29

Market growth (%)

Answer 29

Change in size / initial size x 100

Question 30

Labour productivity

Answer 30

Number of units produced in a given period / number of employees

Question 31

Profit for the year

Answer 31

Operating profit + other profit - net finance costs - tax

Question 32

Price elasticity of demand

Answer 32

% change in quantity demand / % change in price

Question 33

Gearing

Answer 33

Non-current liabilities / total equity + non-current liabilities x 100

Question 34

Added value

Answer 34

Sales revenue - costs of bought in goods

Question 35

Payables days

Answer 35

Payables (creditors) / cost of sales x 365

Question 36

Receivables days

Answer 36

Receivables / sales revenue x 365

Question 37

Margin of safety

Answer 37

Actual level of output - break even level of output

Question 38

Current ratio

Answer 38

Current assets / current liabilities

Question 39

Profit for the year margin (%)

Answer 39

Profit for the year / sales revenue x 100