Calculations

Question 1

Market growth (%) =

Answer 1

Change in the size of the market over a period / Original size of the market × 100

Question 2

Added value =

Answer 2

Sales revenue − costs of bought-in goods and services

Question 3

Labour productivity =

Answer 3

Output over a time period /
Number of employees

Question 4

Return on investment (%) =

Answer 4

Profit from the investment (£)
/ Cost of the investment (£) × 100

Question 5

Gross profit margin (%) =

Answer 5

Gross profit
/ Revenue × 100

Question 6

Variance =

Answer 6

Budgeted figure – actual figure

Question 7

Contribution per unit =

Answer 7

Selling price − Variable costs per unit

Question 8

Total contribution =

Answer 8

Total revenue − Total variable costs

Question 9

Employee costs as percentage of turnover =

Answer 9

Employee costs
/ Turnover × 100

Question 10

Labour cost per unit =

Answer 10

Labour costs
/ Units of output

Question 11

Break-even output =

Answer 11

Fixed costs
/ Contribution per unit

Question 12

Payables days =

Answer 12

Payables
/ Cost of sales × 365

Question 13

Receivables days =

Answer 13

Receivables
/ Revenue × 365

Question 14

Inventory turnover =

Answer 14

Cost of sales
/ Average inventories held