Formulae Flashcards
Market share
Sales of a product
————————- X100
Total market sales
Price elasticity of demand
% change in quantity
——————————
% change in price
Income elasticity of demand
% change in quantity demanded
———————————————-
% change in income
Net cash flow
Total inflows - Total outflows
Sales volume
Total number of units sold over a period of time
Sales revenue
Quantity x price
Total variable costs
Units sold x variable costs per unit
Total costs
Total fixed costs + Total variable costs
Contribution per unit
Selling price per unit - variable cost per unit
Total contribution
Contribution per unit x units sold
Break even
Fixed costs
——————————
Contribution per unit
Variance
Actual - budget
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit - overheads
Net profit
Operating profit +/- finance costs
Gross profit margin
Gross profit
——————— x 100
Sales revenue
Operating profit margin
Operating profit
———————— x100
Sales revenue
Net profit margin
Profit for the year ( net profit)
—————————————— x 100
Sales revenue
Current ratio
Current assets
—————————
Current liabilities
Acid ratio test
Current assets - stock
——————————-
Current liabilities
Productivity (labour)
Output per period (units)
————————————
Number of employees
Capacity utilisation
Actual level of output
————————————- x 100
Maximum possible output
Gearing ratio
Non current liabilities
——————————- x 100
Total capital employed
Margin of safety
Actual output - breakeven point
