Equations

Question 1

REVENUE

SALES OR TURNOVER

Answer 1

selling price per unit x number of units sold

Question 2

VARIABLE COSTS

Answer 2

VARIABLE COSTS PER UNIT
x
NUMBER OF UNITS SOLD

Question 3

PROFIT

Answer 3

TOTAL CONTRIBUTION - FIXED COSTS

Question 4

MARKET CAPITALISATION

Answer 4

NUMBER OF SHARES ISSUE X CURRENT SHARE PRICE

Question 5

EXPECTED VALUE OF A DECISIONS WITH MULTIPLE POSSIBLE OUTCOMES

Answer 5

(PAY-OFF OF A x PROBABILITY OF A)
+
(PAY OFF OF B x PROBABILITY OF B)

Question 6

NET GAIN

Answer 6

EXPECTED VALUE - INITIAL COST OF DECISIONS

Question 7

MARKET GROWTH (%)

Answer 7

CHANGE IN SIZE OF MARKET OVER PERIOD / ORIGINAL SIZE OF THE MARKET x 100

Question 8

MARKET SHARE (%)

Answer 8

(SALES OF 1 PRODUCT / TOTAL SALES IN MARKET) x 100

Question 9

ADDED VALUE

Answer 9

SALES REVENUE -COSTS OF BROUGHT IN FOR GOODS OR SERVICES

Question 10

LABOUR PRODUCTIVITY

Answer 10

OUTPUT OVER TIME PERIOD / No. OF EMPLOYEES

Question 11

UNIT COST

Answer 11

TOTAL COSTS / NUMBER OF UNITS OUTPUT

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 the investment) x 100

Question 14

GROSS PROFIT

Answer 14

Revenue - cost of sales

Question 15

VARIANCE

Answer 15

BUDGETED FIGURE - ACTUAL FIGURE

Question 16

CONTRIBUTION PER UNIT

Answer 16

SELLING PRICE - VARIABLE COSTS PER UNIT

Question 17

TOTAL CONTRIBUTION

Answer 17

CONTRIBUTION PER UNIT X UNIT SOLD
OR
TOTAL REVENUE - TOTAL VARIABLE COSTS

Question 18

BREAK EVEN OUTPUT

Answer 18

FIXED COSTS / CONTRIBUTION PER UNIT

Question 19

MARGIN OF SAFETY

Answer 19

ACTUAL LEVEL OF OUTPUT - BREAK EVEN LEVEL OF OUTPUT

Question 20

LABOUR TURNOVER (%)

Answer 20

(NUMBER OF STAFF LEAVING / NUMBER OF STAFF EMPLOYED INTO THE BUSINESS) x 100

Question 21

EMPLOYEE RETENTION RATE (%) for a certain time period

Answer 21

(NUMBER OF EMPLOYEES WHO REMAINED DURING TIME PERIOD / NUMBER OF EMPLOYEES AT THE START OF TIME) x100

Question 22

EMPLOYEE COSTS AS A % OF TURNOVER

Answer 22

(EMPLOYEE COSTS / TURNOVER) x100

Question 23

LABOUR COSTS PER UNIT

Answer 23

LABOUR COSTS / UNITS OF OUTPUT