Equations Flashcards
Profit
Profit = Total revenue - Total costs
Profit = Contribution - Fixed costs
Break Even output
Break even output = fixed coasts / contribution per unit
Contribution per unit
Contribution per unit = selling price - variable costs
Total contribution
Total contribution = contribution per unit x quantity sold
Operating profit margin
Operating profit margin = (operating profit/revenue) x 100
Margin of safety
Margin of safety = actual output - break even output
Capital intensity
Capital intensity = (capital goods / fixed costs) x 100
Average cost per unit
Average cost = Total production costs / Total output
per unit
Budget variance
Budget Variance = budget amount - actual amount
Labour productivity
Labour productivity = output / num of employees
Labour turnover
Labour turnover = (num of employees / total num of employees) x 100
Capacity utilisation
Capacity utilisation = ( actual output / maximum possible output) x 100
Gross profit
Gross profit = sales revenue - cost of sales
Gross profit margin
Gross profit = (gross profit / revenue) x 100
margin
Operating (net) profit
Operating = (gross profit) - (fixed cost + variable costs)
(Net) profit
Net capital employed
Net capital = non current liabilities - equity
Employed
Total variable costs
Total variable = num of units sold x variable costs per unit
Costs
Market share
Market = sale of firm / total sale of market
Share
% change
% change = (different / original) x 100
Total added value
Total added = sales revenue - costs of ????
Value
Net cash flow
Net cash = cash inflow - cash outflows
Flow
Sales revenue
Sales revenue = selling price x quantity sold
Market size
Market share = num of unit sold x selling price
Market share = revenue / market share
PED
PED = (% change in quantity demanded / % change in price)
YED
YED = (% change in quantity demanded / % change in income)
Market growth
Market growth = ( new market size - old market size) / old market x 100
Acid ratio test
Acid ratio = (current assets - stock) / current liabilities
Test
Current ratio
Current ratio = current assets / current liabilities
Return of capital employed
ROCE = (operating profit / capital employed) x 100
Gearing ratio
Gearing ratio = non current liabilities / (total equity + non current liabilities) x 100
