formula and key data Flashcards
what is the calculation for total costs?
Fixed costs+ variable costs
what is profit?
Total revenue- Total costs OR Total contribution - fixed costs
(total) variable costs
variable costs per unit x number of units sold
Total revenue
selling price per unit x number of units sold
market capitalisation of a business
number of issued shares X current share price
decision net gain=
expected value- initial cost of decision
what does market size mean?
the quantity/ volume of goods and services produced in a particular market over a period of time
market size=
the total sales revenue generated from selling all the goods and services produced in a particular market over a period of time
what is sales volume?
quantity of goods and services produced by a particular business over a period of time
what is sales value?
total sales revenue of a particular business over a period of time
market growth (%) in a year=
change in sixe of the market between year (x-1) and year x/ size of the market in year (x-1) x 100
sales growth (%) in year X=
change in sales of product or business between year(x-1)and year x/ sales of product or business in a year (x-1)
market share (%)=
sales of one product or brand or business/ total sales in the market x 100
price elasticity of demand=
percentage change in quantity demand / percentage change price
what is the ranges for price inelastic and elastic
inelastic demand= 0 to -1 elastic demand= -1 to infinite
added value=
sales revenue- cost of bought items or goods and services
labour productivity=
output per time period / number of employees
unit cost (average costs)=
total costs of production / number of units of output produced
capacity utilisation (%)=
actual output in a given time period / maximum possible output in a given time period
return on investment (%)=
return on investment(£) / cost of investment x 100
Gross profit=
sales revenue- cost of sales
operating profit (profit from operations)
sales revenue- cost of sales- operating expenses
profit for year=
operating profit+ profit from other activities- Net finance costs- tax
variance=
favourable variance=
Adverse variance=
difference between an actual and a budgeted figure.
profits being higher than forecast
profits being lower than forecast
contribution per unit=
selling price- variable cost per unit
total contribution=
contribution per unit x units produced/ sold OR
total revenue- total variable costs
break- even output=
fixed costs/ contribution per unit
what is break-even?
the point at which the total revenue and total costs equal the same, making profit 0
margin of safety=
actual level of output- breakeven level of output
Gross profit margin=
gross profit/ sales revenue x 100
profit from operations margin= operating profit margin %=
operating profit/ sales revenue x 100
profit for year margin (%)=
profit for year/ sales revenue x 100
labour turnover (%)=
number of staff leaving during the yea/ average number of staff employed by the business during the year x 100
employee retention rate (%) for a particular time period=
number of employees at end of period (number of leavers) / number of employees at end of period x 100
employee cost as a percentage of turnover=
employee costs/ sales turnover x 100
labour cost per unit=
labour costs/ units of output
