Calculations Flashcards
PED (Price elasticity of demand)
% Change in QD / % Change in Price
YED
% Change in QD / % Change in income
Market Share
(Business Sales / Market Sales) x 100
Market size
Total Value of Business sale
Market growth
(Difference / original) x 100
Total costs
Fixed Costs + variable Costs
Total variable costs
Variable cost per unit of output x quantity
Revenue
Selling price x Quantity sold
Profit
Revenue - Total costs
Contribution (per unit)
Selling price per unit - Variable Cost per unit
Total Contribution
Total Sales Revenue - Total Variable costs
Or
Contribution per unit X number of Units
Margin of safety
Actual Level of output - Break even point
Net Cash Flow
Inflow - Outflows
Budget Variance
Budgeted - Actual
Gross Profit
Revenue - Cost of Goods Sold
Net Profit
Revenue - Total Costs
Or
Gross profit - Expenses
Net Profit Margin
(Net profit / Revenue) x 100
Labour Turnover %
(Number of Leavers / Avg no of employees) x 100
Labour Productivity
Output / Number of Employees
Added Value
Value of output - Value of input (costs)
[selling price - cost of raw materials]
Capacity utilisation
(Actual output / Maximum Possible Output) x 100
Lead Time
Time difference between re-order quantity and stock increase
Re-Order Quantity
Increase in stock level when delivery received
Moving Average
Previous Month + current month + Next month / 3
Working Capital
Current Assets – Current Liabilities
Capital
Employed
Shareholder funds + Non current liabilities
Depreciation
Historical Cost – Residual Value
ROCE
Net Profit (B4 Tax) / Capital Employed
Current Ratio
Current Assets / Current Liabilities
Acid Test
(Current Assets - Stock) / Current Liabilities
Gearing
(NCL / Capital Employed) x100
Decision Tree:
Expected Value
Expected Value – Initial Cost
Decision Tree:
Net Gain
Expected Value – Initial Cost
CPA: EST
Previous EST + Previous Activity Duration
(Work from left to right)
(Choose biggest outcome if more than one route)
CPA: LFT
Previous LFT – Following Activity Duration
(Work from right to left)
(Choose smallest outcome if more than one route)
CPA: FLOAT
LFT – Duration -EST
Payback
(Number of Full years) &
Amount needed in final year
Amount getting in final year
X (12Months)
Average Rate of
Return
(Average Annual Profit / Cost of Investment) x 100
Net Present
Value
Multiply each year’s income by its discount rate
2. Add them together
3. Deduct initial cost
Contribution
Selling Price Per Unit – Variable Cost Per Unit = Contribution Per Unit
Contribution Per Unit x Units Sold = Total Contribution
