Formula AS/A-level Business specification

Question 1

Total costs=

Answer 1

Fixed costs + Variable costs

Question 2

Profit=

Answer 2

Profit = Total revenue - Total costs

OR Total contribution - Fixed costs

Question 3

Variable costs Total variable costs=

Answer 3

Variable cost per unit × Number of units sold

Question 4

Total revenue=

Answer 4

Selling price per unit × Number of units sold

Question 5

Market capitalisation of a business=

Answer 5

Number of issued shares × Current share price

Question 6

Market growth % in year’X’=

Answer 6

Size of the market in year (X-1) × 100

Question 7

Market share % =

Answer 7

=
Sales of one product OR brand OR business over
———————————————————————
Total sales in the market × 100

Question 8

Price elasticity of demand=

Answer 8

Percentage change price

Question 9

Labour productivity=

Answer 9

Number of employees

Question 10

Unit costs average costs =

Answer 10

Number of units of output produced

Question 11

Capacity utilisation %=

Answer 11

Maximum possible output in a given time period × 100

Question 12

Return on investment % =

Answer 12

Cost of the investment (£) ×100

Question 13

Gross Profit =

Answer 13

Sales Revenue - Cost of Sales

Question 14

Operating profit =

Answer 14

Sales Revenue - Cost of Sales - Operating Expenses

Question 15

Profit for year=

Answer 15

Operating profit + Profit from other activities - Net finance costs -Tax

Question 16

Contribution per unit =

Answer 16

Selling price - Variable costs per unit

Question 17

Break-even output =

Answer 17

Contribution per unit

Question 18

Margin of safety =

Answer 18

= Actual level of output - Breakeven level of output

Question 19

Gross profit margin % =

Answer 19

Sales revenue × 100

Question 20

Operating profit margin % =

Answer 20

Sales revenue × 100

Question 21

Profit for year margin % =

Answer 21

Sales revenue × 100

Question 22

Labour turnover % =

Answer 22

Average number of staff employed by the business during the year × 100

Question 23

Employee retention rate % for a particular time period=

Answer 23

Number of employees at end of period ×100

Question 24

Employee costs as percentage of turnover =

Answer 24

Sales turnover × 100

Question 25

Labour cost per unit =

Answer 25

Units of output