Equations All Together Flashcards
How Do You Calculate: Price Elasticity of Demand (PED)?
PED= %changeinquantitydemanded/ %changeinprice
How Do You Calculate: Income Elasticity of Demand (YED)?
YED= %changeinquantitydemanded/ % CHANGE IN INCOME
How Do You Calculate: Revenue (Sales Revenue)?
Revenue=Priceperunit × Quantitysold
Gross Profit calculation?
Gross profit= revenue-cost of sales
Operating profit calculation?
Operating Profit= Gross profit- operating expenses
Gross Profit Margin(%) Calculation?
(Gross profit/Revenue) x 100 = GPM
Operating Profit Margin(%) Calculation?
(Operating Profit/Revenue) x 100 =OPM
Market Share (%) Calculation?
(Sales of the business/Total market sales) x 100
What is WPIDEC?
Weak Pounds Imports Expensive, Exports Cheaper
What is SPICED?
Strong Pound Imports Cheaper, Exports Expensive
Total Costs Calculation?
Fixed costs+ variable costs = Total costs
Break even output calcualtion?
Fixed Costs/ Price per unit- Variable Cost Per Unit
Contribution Per Unit calculation?
SellingPrice−VariableCost = Contribution Per Unit
Margin of Safety Calculation?
ActualOutput−Break-evenOutput
Labour Productivity Calculation?
Output/ Number of employees
Unit Costs (Average Costs) Calculation?
Total Costs/Output = Unit Costs (Average Costs)
Capacity Utilisation (%) Calculation?
(Actual Output/ Maximum Possible Output) x100 = Capacity Utilisation (%)
Market Capitalisation Calculation?
Share Price x Number of Shares Issued = Market Capitalisation
Return on Investment (ROI) Calculation?
(Return/Investment) X 100
Average Rate of Return (ARR) Calculation?
(Average Annual Return/ Initial Investment) x 100 = Average Rate of Return (ARR)
Net Profit MARGIN Calculation?
NetProfitMargin= (Net Profit/ Revenue) x 100
Sales Growth(%) Calcualtion?
Sales Growth= (Change in Sales/Original Sales) X 100
Market Growth(%) Calculation?
(Change in market share/ Original Market Size) x 100
