Equations Flashcards
Revenue
Selling price per unit x number of units sold
Variable costs
Variable costs per unit x units sold
Total costs
Fixed costs + variable costs
Profit
Revenue - costs
Market capitalisation
Number of issued shares x current share price
Net gain
Expected value - initial cost of decision
Market growth (%)
(Change in market size over a period/original size of the market) x 100
Market share (%)
(Sales of one product/ total sales in the market) x 100
Added value
Sales revenue - bought in goods or services
Labour productivity
Output over a time period/ number of employees
Unit costs
Total costs/ number of units of outputs
Capacity utilisation (%)
Actual output/ maximum possible output
Return on investment (%)
(Profit from investment/ cost of investment) x 100
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - operating expenses
Profit for the year
Operating profit + profit from other activities- net finance costs - tax
Gross profit margin (%)
(Gross profit/ revenue) x 100
Operating profit margin (%)
(Operating profit/ revenue) x 100
Profit for year margin (%)
(Profit for year/ revenue) x 100
Variance
Budgeted figure - actual figure
Contribution per unit
Selling price - variable cost per unit
Total contribution
Contribution per unit x units sold OR total revenue - total variable cost
Break-even output
Fixed costs/ contribution per unit
Margin of safety
Actual level of output/ break-even level of output
