Equations Flashcards
Revenue?
SP/Number of units sold
VC?
VC per unit/ Number of units sold
TC?
FC + VC
Profit?
Total revenue − Total costs OR
Total contribution − Fixed costs
Market capitalisation of a business?
Number of issued shares × Current share price
Net Gain?
Expected value − Initial cost of decision
Market Growth?
Change in the size of the market over a period/Original size of the market × 100
Market Share?
Sales of one product/Total sales in the market × 100
Added Value?
Sales revenue − costs of bought-in goods and services
Labour productivity?
Output over a time period/Number of employee
Unit Costs (AC)?
Total costs/Number of units of output
Capacity Utilisation?
Actual output/Maximum possible output × 100
Return On Investment?
Profit from the investment /Cost of the investment × 100
Gross Profit?
Revenue − Cost of Sales
Operating Profit?
Gross profit − Operating Expenses
Net Profit?
TR/TC
Gross Profit Margin?
Gross Profit/Revenue x 100
Operating Profit Margin?
Operating Profit/Revenue x 100
Net Profit Margin?
Net Profit/Revenue x 100
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?
Fixed costs/Contribution per unit
Labour Turnover?
Number of staff leaving/Number of staff employed by the business × 100
