Equations Flashcards
1
Q
Total cost
A
Fixed + variable
2
Q
Average costs
A
Total costs / Output
3
Q
Gross profit
A
Revenue - Variable costs
4
Q
Net profit
A
revenue - fixed costs
5
Q
Contribution per unit
A
Selling price - Variable cost
6
Q
Total contribution
A
SP - VC x # of items sold
7
Q
Break even
A
fixed costs / (sp-vc)
8
Q
Payback
A
target income / income per month
9
Q
ARR
A
(net profit/ # of years) /
initial capital cost x 100
10
Q
Working capital
A
current assets - current liabilities
11
Q
Labour turnover
A
of staff leaving / staff employed x100
12
Q
labour productivity
A
total output/ # of workers
13
Q
capacity utilisation
A
current output/ max output x100
14
Q
market share
A
sales of firm A / market sales x100
15
Q
market growth
A
(new market size - old market size) / old market size x100
