equations Flashcards
what is revenue and its formula?
all the money a business makes from sales.
selling price x quantity sold
what is profit and its formula?
money a business has leftover from revenue after all costs have been covered.
revenue - costs
what is breakeven and its formula?
the point at which a business doesn’t make a profit or a loss.
fixed costs
—————————–
contribution per unit.
what is contribution and its formula?
money left over from selling price after variable costs have been subtracted. this can be used to pay for fixed costs.
selling price - variable cost per unit.
percentage change formula?
old
what is price elasticity of demand and its formula?
how sensitive change in demand is to a change in price
% change in demand
——————————-
% change in price
what is labour productitivity and is formula?
measures efficiency or rate of efficiency. amount of output per worker.
output per period
————————————–
number of employees per period
what is capacity utilisation and its formula?
how much of full capacity is being used.
current output
————————— x100
maximum output
market share formula?
business sales
__________________ x100
market sales
market growth?
difference
—————– x100
original
total contribution formula?
total revenue - total variable costs
contribution per unit x number of units
what is margin of safety formula?
actual level of output - break even point
total variable costs formula?
variable costs per unit x number of units
net cash flow formula?
inflows - outflows
budget variance formula?
budgeted sales - actual sales
gross profit formula?
sales revenue - cost of sales
net profit formula?
gross profit - expenses
gross profit margin formula?
gross profit
______________ x100
revenue
net profit margin formula?
net profit
___________ x100
revenue
labour turnover formula?
number of leavers
_____________________ x100
average number of employees
answer as %
labour productivity formula?
output
_______________________
number of employees
added value formula?
value of output - cost of inputs
(selling price - cost of raw materials)
capacity utilisation formula?
actual output
_______________ x100
maximum output possible
lead time formula?
time difference between re-order quantity and stock increase
re-order quantity formula?
increase in stock when delivery is received
