Formula Theme 1-4 Flashcards
Percentage change
New figure- old figure/ old figure x 100
Market growth
Current size x 1 + (growth/100)
Market share
Firm’s sales/ total industry sales x 100
Price elasticity of demand
% change in quantity demanded/ % change in price
Income elasticity of demand
% change in quantity demanded/ change in income
Total revenue
Sales price x quantity
Total variable costs
Variable cost per unit x quantity
Total costs
Total variable costs + total fixed costs
Net cash flow
Inflows - outflows
Opening balance
Closing balance from previous month
Closing balance
Opening balance that month +net cash flow
Contribution per month
Sales price - variable cost per unit
Break even output
Total fixed costs/ contribution per unit
Total contribution
Contribution per unit x quantity
Margin of safety
Actual/ forecast output - break even output
Profit
Total revenue - total costs
or
Total contribution- total fixed costs or
Margin of safety x contribution per unit
Variance
Actual figures - budgeted figures
Profit margin
Profit/ revenue x 100
Gross profit
Revenue - cost of sales
