Calculations

Question 1

Added value

Answer 1

difference between the cost of purchasing raw materials and the price for which the finished good is sold for.

Question 2

market share

Answer 2

Number of products sold by the business/ total market sales * 100

Question 3

margin of safety

Answer 3

The difference between output level and break even output

Question 4

Closing balance

Answer 4

net cash flow + opening balance.

Question 5

Breakeven formula

Answer 5

Break-even Output = Fixed Costs divided by the Contribution Per Unit.

Question 6

Revenue

Answer 6

Total Revenue = Quantity of Units Sold x Selling Price

Question 7

Profit

Answer 7

Revenue- costs

Question 8

contribution

Answer 8

selling price - variable costs

Question 9

Margin of safety

Answer 9

actual sales – break-even

Question 10

Capital productivity

Answer 10

Capital productivity = Output / Capital employed

Question 11

Reorder level

Answer 11

Reorder level = average demand × lead time

Question 12

Capacity utilisation

Answer 12

Actual output/max possible output x 100

Question 13

Net assets

Question 14

Capital employed