Equations Flashcards
Revenue (Sales or Turnover)
Selling price per unit × Number of units sold
Variable costs (Total variable costs)
VarIable cost per unit × Number of units sold
Total costs =
Fixed costs + Variable costs
Profit =
Total revenue - Total costs
OR
Total contribution - Fixed costs
Market capitalisation
Number of issued shares x current share price
Expected value of a decision with two possible outcomes
A & B=
[Pay-off of A x probability of A] + Pay-off of B × probability of B
Net gain =
Expected value - Initial cost of decision
Market growth (%)
New -old
————————————- X100
Original size of the market
Market share (%)
Business sales
——————————. X100
Total sales in market
Added value
Sales revenue - costs of bought-in goods and servIces
Labour productivity =
Output over a time period
————————————-
Number of employees
Unit costs (average costs)=
Total costs
——————————-
Number of units of output
Capacity utilisation (%) =
Actual output
———————————— X100
Maximum possible output
Return on investment (%) =
Profit from the investment (E)
——————————————- x 100
Cost of the investment (£)
Gross Profit =
Revenue - Cost of Sales
Profit from Operations
Operating profit =
Gross profit - Operating Expenses
Profit for year =
Operating profit + Profit from other activities - Net finance costs - Tax
Gross profit margin (%) =
Gross profit
——————- × 100
Sales revenue
Operating profit margin (%) =
Operating profit
————————. × 100
Revenue
Profit for year margin (%)
Profit for year
———————. × 100
Sales Revenue
Variance =
Budgeted figure - actual figure
Contribution per unit =
Selling price - Variable costs per unit
Total contribution =
Contribution per unit × Units sold
Total revenue - Total variable costs
Break-even output =
Fixed costs
————————
Contribution per unit
