calculations

Question 1

revenue

Answer 1

selling price x number sold

Question 2

total variable cost

Answer 2

variable cost per unit x number sold

Question 3

profit

Answer 3

total revenue - total cost
total contribution - fixed cost

Question 4

total cost

Answer 4

fixed cost +variable cost

Question 5

market capitalisation

Answer 5

number of shares sold x current share price

Question 6

net gain

Answer 6

expected value - initial cost of decision

Question 7

market growth

Answer 7

change in size of market over a period/original size of market x 100

Question 8

market share

Answer 8

sales of the business or product / total sales in market x 100

Question 9

added value

Answer 9

sales revenue - cost o brought in services and good

Question 10

labour productivity

Answer 10

output over time period / number of employees

Question 11

unit cost

Answer 11

total cost / number of units produced

Question 12

capacity utilisation

Answer 12

actual output/max possible output x 100

Question 13

return on investment

Answer 13

profit from investment / cost of investment x 100

Question 14

gross profit

Answer 14

revenue - cost of sales

Question 15

profit from operations

Answer 15

gross profit - operating expenses

Question 16

profit for year

Answer 16

operating profit + profit from other activities - net financial cost

Question 17

net profit

Answer 17

gross profit - operating expenses and tax

Question 18

gross profit margin

Answer 18

gross profit / revenue x 100

Question 19

net profit margin

Answer 19

net profit / revenue x 100

Question 20

variance

Answer 20

budgeted figure - actual figure

Question 21

contribution per unit

Answer 21

selling price - variable cost per unit

Question 22

total contribution

Answer 22

contribution per unit x unit sold
total revenue - total variable cost

Question 23

break even

Answer 23

fixed cost / selling price - variable cost

Question 24

margin of safety

Answer 24

actual level of output - break even level of output

Question 25

labour turnover

Answer 25

number of staff leaving /number of staffed employed by the business x 100

Question 26

employee retention rate

Answer 26

number of employees left in the business / number of employees at the start x 100

Question 27

employee cost as a % of turnover

Answer 27

employee cost / turnover x 100

Question 28

labour cost per unit

Answer 28

labour cost / units of output

Question 29

return on capital employed (ROCE)

Answer 29

operating profit / total equity + non-current liabilities (= capital employed) x 100

Question 30

current ratio

Answer 30

current assets / current liabilities

Question 31

gearing

Answer 31

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

Question 32

payables days

Answer 32

payables/ cost of sales x 365

Question 33

inventory turnover

Answer 33

cost of sales / average inventories held

Question 34

average rate of return

Answer 34

average annual return/ initial cost of project x 100