FORMULA Flashcards
How do you calculate revenue?
Selling price per unit x number of units sold
How do you calculate total variable costs?
Variable cost per unit x number of units sold
How do you calculate total costs?
Fixed costs + Variable costs
How do you calculate profit?
Total revenue - total costs
How do you calculate market capitalisation?
Number of issued shares x current share price
How do you calculate expected value of a decision with 2 possible outcomes?
Pay-off of y x probability of y
How do you calculate net gain?
Expected value minus initial cost of decision
How do you calculate market growth (%)
Change in the size of the market over a period of time divided by original size of market X100
How do you calculate Market share? %
Sales of one product or brand or business divided by total sales in the market X100
How do you calculate added value?
Sales revenue - costs of bought-in goods and services
How do you calculate labour productivity?
Output over a time period divided by number of employees
How do you calculate unit costs ( average costs) ?
Total costs divided by number of units of output
How do you calculate capacity utilisation?
Actual output divided by maximum possible output X100
How do you calculate return on investment?
Profit from investment divided by cost of investment X100
How do you calculate gross profit?
Revenue minus cost of sales
How do you calculate profit from operations?
Gross profit minus operating expenses
How do you calculate profit for the year?
Operating profit + profit from other activities minus net finance costs minus tax
How do you calculate gross profit margin?
Gross profit divided by revenue X100
How do you calculate operating profit margin?
Operating profit divided by revenue X100
How do you calculate variance?
Budgeted figure minus actual figure
How do you calculate contribution per unit?
Selling price minus variable costs per unit
How do you calculate total contribution?
Contribution per unit x units sold
How do you calculate break-even output?
Fixed costs divided by contribution per unit
How do you calculate margin of safety?
Actual level of output minus break even level of output
How do you calculate labour turnover? (%)
Number of staff leaving divided by number of staff employed by the business X100
How do you employee retention rate % for a time period?
Number of employees who remained with the business for whole time period divided by number of employees at start of the period X100
How do you calculate employee costs as percentage of turnover?
Employee costs divided by turnover X100
How do you calculate labour cost per unit?
Labour costs divided by units of output X100
