Equations Flashcards
Market Size Formula
Number Units Sold X Price
Market Share Formula
Sales of One business/total sales within the market X 100
Market Growth Formula
Change in the size of the market/Original Size of the market X 100
Cost Plus Pricing Formula
Unit costs + % mark up
Price Elasticity Of Demand Equation
% change in quantity demanded/ % change in price
Break Even Point
Fixed Cost/Contribution Per Unit
Contribution Per Unit
Selling Price - Variable Cost Per Unit
Total Contribution Equation
Contribution Per Unit X Number of Units Sold
Profit (through contribution)
Total Contribution - Fixed Costs
Margin Of safety
Actual Output - Break Even Output
Profit (through margin of safety)
Margin of Safety X Contribution Per Unit
Variance
Budgeted Figure - Actual Figure
Gross Profit
Sales Revenue - cost of sales
Operating Profit
Gross Profit - Expenses
Profit For the Year Equation
Operating Profit +/- Finance Costs
Cost of sales (Used to work out gross profit)
Sales Revenue - Gross Profit
Gross Profit Margin
Gross Profit/Revenue X 100
Operating Profit Margin
Operating Profit/Revenue X 100
Profit For the year Margin
Profit For the year/Revenue X 100
Current Ratio Equation
Current Assets/ Current Liabilities
Acid Test Ratio
Current Assets/(Current liabilities - Stock)
Working Capital
Current Assets - Current Liabilities
Capacity Utilisation
Actual Level Of output/Maximum Level Of output X 100
Variation
Actual Data - Moving Average
Gearing
Non Current Liabilities/Total Equity + Non Current Liabilities X 100
Capital Employed
Non Current Liabilities + Total Equity
Return on Capital Employed
Operating Profit/Total Equity + Non-current liabilites X 100
