Formula

Question 1

Revenue

Answer 1

Selling price per unit x Number of units Sold

Question 2

Variable Costs

Answer 2

Variable cost per unit x Number of units

Question 3

Total costs

Answer 3

Fixed cost + variable costs

Question 4

Market Capitalisation

Answer 4

Number of issued shares x Current share price

Question 5

Decision Trees- Expected Value

Answer 5

[Pay-off of A x Probability of A] + [Pay-off of B x Probability of B]

Question 6

Decision Trees- Net Gain

Answer 6

Expected Value - Initial cost of decision

Question 7

Market Growth

Answer 7

Change in size or a market over a time period/ original size of the market x 100

Question 8

Profit

Answer 8

Total Revenue - Total cost

Or

Total Contribution - Fixed Cost (Depends on the question)

Question 9

Market Share

Answer 9

Sales of one Product or Brand or Business/ Total sales in the market x 100

Question 10

Added Value

Answer 10

Sales Revenue - Costs of bought in goods and services

Question 11

Labour Productivity

Answer 11

Output over a time period/ Number of employees

Question 12

Unit costs

Answer 12

Total costs/ Number of units of output

Question 13

Capacity utilisation

Answer 13

Actual Output/ Maximum possible output x 100

Question 14

Return on Investment

Answer 14

Profit from the investment/ Cost of the investment x 100

Question 15

Gross Profit

Answer 15

Revenue - Cost of Sales

Question 16

Operating Profit

Answer 16

Gross Profit - Operating Expenses

Question 17

Profit for the Year

Answer 17

(Operating profit + profit from other activities) - Net finance costs - Tax

Question 18

Gross Profit Margin

Answer 18

Gross Profit/ Sales Revenue x 100

Question 19

Operating profit margin

Answer 19

Operating Profit/ Revenue x 100

Question 20

Profit for the year margin

Answer 20

Profit for the year/ Sales Revenue x 100

Question 21

Variance

Answer 21

Budgeted Figure- Actual Figure

Question 22

Contribution Per Unit

Answer 22

Selling Price - Variable Cost Per Unit

Question 23

Total Contribution

Answer 23

Total Revenue - Total Variable Cost

Question 24

Break-Even Output

Answer 24

Fixed Cost/ Contribution Per Unit x 100

Question 25

Margin of Safety

Answer 25

Actual Level of Output - Break-Even level of output

Question 26

Labour Turnover %

Answer 26

Number of Staff Leaving/ Number of staff employed by the Business x 100

Question 27

Employee Retention Rate %

Answer 27

No. employees who remained with the business for the whole time period / No. of employees at the start of the time period x 100

Question 28

Labour cost per unit

Answer 28

Labour costs/ units of output

Question 29

Return on Capital Employed (ROCE) %

Answer 29

Operating Profit/ Capital Employed (Total Equity + Non-Current Liabilities) x 100

Question 30

Current Ratio

Answer 30

Current Assets/ Current Liabilities

Question 31

Gearing %

Answer 31

Non-Current Liabilities/ (Total Equity + Non-Current Liabilities)

Question 32

Payable Days

Answer 32

Payables/ Cost of Sales x 365

Question 33

Receivable days

Answer 33

Receivables/ Revenue x 365

Question 34

Inventory Turnover

Answer 34

Cost of Sales/ Average Inventories Held

Question 35

Average Rate of Return %

Answer 35

Average Annual Return/ Initial Cost of project x 100

Question 36

Payback Period

Answer 36

Cumulative Net Cash Flow Year before/ Net Cashflow of the Year x 12

This is to get how many months.