Equations Flashcards
1
Q
Market share
A
Sales of a business/
Total sales in the market
(x100)
2
Q
Total contribution
A
Contribution per unit x number of units sold
2
Q
PED
A
%change in quantity demanded/
%change in price
2
Q
Breakeven
A
Total fixed costs/
Contribution per unit
3
Q
Income elasticity of demand
A
%change in quantity demanded/
%change in income
4
Q
Contribution
A
Selling price - variable cost per unit
5
Q
Margin of safety
A
Total output - Breakeven point
6
Q
Gross profit
A
Sales revenue - cost of sale
6
Q
Sales volume
A
Sales revenues/
Price
7
Q
Gross profit margin
A
gross profit/sales revenue
(x100)
8
Q
Total variable costs
A
Average variable cost x output
9
Q
Sales revenue
A
Price x quantity
10
Q
Total costs
A
Fixed costs + variable costs
11
Q
Average variable costs
A
Variable costs / output
12
Q
Profit
A
Total revenue - total costs
