FORMULA

Question 1

How do you calculate revenue?

Answer 1

Selling price per unit x number of units sold

Question 2

How do you calculate total variable costs?

Answer 2

Variable cost per unit x number of units sold

Question 3

How do you calculate total costs?

Answer 3

Fixed costs + Variable costs

Question 4

How do you calculate profit?

Answer 4

Total revenue - total costs

Question 5

How do you calculate market capitalisation?

Answer 5

Number of issued shares x current share price

Question 6

How do you calculate expected value of a decision with 2 possible outcomes?

Answer 6

Pay-off of y x probability of y

Question 7

How do you calculate net gain?

Answer 7

Expected value minus initial cost of decision

Question 8

How do you calculate market growth (%)

Answer 8

Change in the size of the market over a period of time divided by original size of market X100

Question 9

How do you calculate Market share? %

Answer 9

Sales of one product or brand or business divided by total sales in the market X100

Question 10

How do you calculate added value?

Answer 10

Sales revenue - costs of bought-in goods and services

Question 11

How do you calculate labour productivity?

Answer 11

Output over a time period divided by number of employees

Question 12

How do you calculate unit costs ( average costs) ?

Answer 12

Total costs divided by number of units of output

Question 13

How do you calculate capacity utilisation?

Answer 13

Actual output divided by maximum possible output X100

Question 14

How do you calculate return on investment?

Answer 14

Profit from investment divided by cost of investment X100

Question 15

How do you calculate gross profit?

Answer 15

Revenue minus cost of sales

Question 16

How do you calculate profit from operations?

Answer 16

Gross profit minus operating expenses

Question 17

How do you calculate profit for the year?

Answer 17

Operating profit + profit from other activities minus net finance costs minus tax

Question 18

How do you calculate gross profit margin?

Answer 18

Gross profit divided by revenue X100

Question 19

How do you calculate operating profit margin?

Answer 19

Operating profit divided by revenue X100

Question 20

How do you calculate variance?

Answer 20

Budgeted figure minus actual figure

Question 21

How do you calculate contribution per unit?

Answer 21

Selling price minus variable costs per unit

Question 22

How do you calculate total contribution?

Answer 22

Contribution per unit x units sold

Question 23

How do you calculate break-even output?

Answer 23

Fixed costs divided by contribution per unit

Question 24

How do you calculate margin of safety?

Answer 24

Actual level of output minus break even level of output

Question 25

How do you calculate labour turnover? (%)

Answer 25

Number of staff leaving divided by number of staff employed by the business X100

Question 26

How do you employee retention rate % for a time period?

Answer 26

Number of employees who remained with the business for whole time period divided by number of employees at start of the period X100

Question 27

How do you calculate employee costs as percentage of turnover?

Answer 27

Employee costs divided by turnover X100

Question 28

How do you calculate labour cost per unit?

Answer 28

Labour costs divided by units of output X100