Equations Flashcards
Market share
Sales of a business/
Total sales in the market
(x100)
Total contribution
Contribution per unit x number of units sold
PED
%change in quantity demanded/
%change in price
Breakeven
Total fixed costs/contribution per unit
Income elasticity of demand
%change in quantity demanded/
%change in income
Contribution per unit
Selling Price - variable cost per unit
Margin of safety
Total output - Breakeven point
Gross profit
Sales revenue - cost of sale
Sales volume
Sales revenues/
Price
Gross profit margin
gross profit/sales revenue
(x100)
Total variable costs
Average variable cost x output
Sales revenue
Price x quantity of units sold
Total costs
Fixed costs + variable costs
Average variable costs
Total Variable costs / quantity of output
Profit
Total revenue - total costs
Net profit
Operating profit - interest (or tax)
Current ratio
Current assets /
Current liabilities
Net profit margin
Net profit / sales revenue
(x100)
Acid test ratio
Current assets - stock /
Current liabilities
Operating profit
Gross profit - expenses
Operating profit margin
Operating profit/sales revenue
(x100)
Working capital
Current Assets - current Liabilities
Productivity
Output per time period/
Input per time period
Labour productivity
Output per time period/
No. of workers
