Component 1 formulas Flashcards
Market share
Sales of one business or product/Total sales in the market x100
Revenue
Price X quantity sold
Total costs
FC+VC
unit costs
Total costs/units of output
Profit
Revenue-total costs
Gross profit
Revenue-cost of sales
Net profit
Gross profit-expenses
Gross profit margin
Gross profit/revenue X100
Net profit margin
Net profit/revenue X100
Total contribution
Revenue- total variable costs
Contribution per unit
Selling price per unit-variable costs per unit
Break even
FC/SP-VC
Margin of safety
Actual sales-break even
Budget variance
Budget amount-actual amount
Net cash flow
Total cash in-total cash out
Closing balance
opening balance + net cash flow
Labour productivity
Units of output/Number of employees
Labour turnover (%)
Number of staff leaving/average number of staff X100
Added value (£)
Selling price-cost of raw materials
Capital productivity (units)
Units of output/cost of machinery or amount invested
Capacity utilisation (%)
Actual outpu/maximum capacity possible X100
Re-order level (units)
(Average daily usage+lead time)+minimum level of stock level
Lead time (days/weeks/months)
(Re-order level - minimum stock level)/ Daily usage
Re-order quantity
maximum stock level - minimum stock level
