formula 2 Flashcards
formula for CPU (contribution)
SP - VC
How is Total contribution calculated?
.CPU x Units sold
.OR Total revenue - Total variable costs
What is the formula for Break-even output?
Fixed costs / Contribution per unit
How is Margin of safety defined?
actual output/ B.E level
What is the formula for Labour turnover (%)?
(no. of staff leaving /no. of staff employed by the business) x100
How is Employee retention rate (%) calculated?
no. of employees who remained with the business for the whole period of time / no. of employees at start of the time period x 100
What is the formula for Employee costs as percentage of turnover?
Employee costs / Turnover x 100
How is Labour cost per unit calculated?
Labour costs / Units of output
What is the formula for Return on capital employed (ROCE) (%)?
Operating profit / (Total equity + non-current liabilities) x 100
Fill in the blank: Total contribution = _______ x Units sold.
Contribution per unit
Fill in the blank: Break-even output = Fixed costs / _______.
Contribution per unit
True or False: The Margin of safety can be calculated by subtracting the break-even level of output from the actual level of output.
True
Fill in the blank: Labour turnover (%) = Number of staff leaving / Number of staff employed by the business x _______.
100
What does the term ‘capital employed’ refer to?
Total equity + non-current liabilities
