Formula Flashcards
Revenue
Selling price per unit x Number of units Sold
Variable Costs
Variable cost per unit x Number of units
Total costs
Fixed cost + variable costs
Market Capitalisation
Number of issued shares x Current share price
Decision Trees- Expected Value
[Pay-off of A x Probability of A] + [Pay-off of B x Probability of B]
Decision Trees- Net Gain
Expected Value - Initial cost of decision
Market Growth
Change in size or a market over a time period/ original size of the market x 100
Profit
Total Revenue - Total cost
Or
Total Contribution - Fixed Cost (Depends on the question)
Market Share
Sales of one Product or Brand or Business/ Total sales in the market x 100
Added Value
Sales Revenue - Costs of bought in goods and services
Labour Productivity
Output over a time period/ Number of employees
Unit costs
Total costs/ Number of units of output
Capacity utilisation
Actual Output/ Maximum possible output x 100
Return on Investment
Profit from the investment/ Cost of the investment x 100
Gross Profit
Revenue - Cost of Sales
Operating Profit
Gross Profit - Operating Expenses
Profit for the Year
(Operating profit + profit from other activities) - Net finance costs - Tax
Gross Profit Margin
Gross Profit/ Sales Revenue x 100
Operating profit margin
Operating Profit/ Revenue x 100
Profit for the year margin
Profit for the year/ Sales Revenue x 100
Variance
Budgeted Figure- Actual Figure
Contribution Per Unit
Selling Price - Variable Cost Per Unit
Total Contribution
Total Revenue - Total Variable Cost
Break-Even Output
Fixed Cost/ Contribution Per Unit x 100
