formula 4 Flashcards
What is the formula for Revenue (Sales or Turnover)?
Selling price per unit x Number of units sold
(SP X QS)
How do you calculate Variable costs?
Variable cost per unit x Number of units sold
What is the formula for Total costs?
Fixed costs + Variable costs
How is Profit calculated?
Total revenue - Total costs OR Total contribution - Fixed costs
What is Market capitalisation of a business?
Number of issued shares × Current share price
What is the formula for Expected value of a decision with two possible outcomes?
[Pay-off of A x probability of A] + [Pay-off of B x probability of B]
How do you calculate Net gain?
Expected value - Initial cost of decision
What is the formula for Market growth (%)?
Change in the size of the market over a period / Original size of the market × 100
How is Market share (%) calculated?
Sales of one product OR brand OR business / Total sales in the market × 100
What is Added value?
Sales revenue - costs of bought-in goods and services
How do you calculate Labour productivity?
Output over a time period / Number of employees
