Calculations - THEMES 1,2&3 Flashcards
Percentage change:
(difference between new & original/ original) x100
market growth (figure when given the old figure and % increase):
value x (1 + converted decimal)
market share:
you business value/ market value
price elasticity of demand (PED):
% change in quantity demanded/ % change in price
Income elasticity of demand (YED):
% change in quantity demanded/ % change in real income
total revenue:
sales x selling price per unit
total variable costs:
variable cost per unit x output
total costs:
total variable costs + total fixed costs
net cash flow: (2 calculations)
receipts - payments
inflows - outflows
opening balance:
equals previous months closing balance
closing balance:
opening balance + net cash flow
contribution per unit:
selling price per unit - variable costs per unit
sppu - vcpu
breakeven output:
fixed cost/ contribution per unit
total contribution:
contribution per unit x output
margin of safety:
actual sales output - breakeven level
profit:
total revenue - total costs
variance:
actual - budgeted figure
profit margins:
(GP or OP or NP/ revenue) x100
gross profit:
revenue - cost of sales
operating profit:
gross profit - overheads
net profit:
operating profit - taxation
current ratio:
current assets/ current liabilities
acid test ratio:
current assets - stock/ current liabilities
productivity:
output/ number of employees
capacity utilisation:
(current capacity level/total capacity) x100
gearing:
(non current liabilities/ capital employed) x100
return on capital employed: (2)
(operating profit/capital employed) x100
(operating profit/ total assets - current liabilities) x100
payback:
sum invested/ net cash per time period
average rate of return:
(average annual return/ initial outlay) x100
labour turnover:
(number of staff leaving the firm per year/ average number of staff) x100
labour productivity:
output per period/ number of employees per period
labour retention:
(staff not leaving in the past year/ average number of staff employed in the year) x100
absenteeism rate:
(days absent per year/ total number of working days) x100
cost per unit:
total fixed costs + total variable costs / total units produced
