Formulae Flashcards
Market Share
(Total sales of company / Total sales of market) X 100
What does the demand and supply curves look like?
A demand curve starts at the top left and slopes down to the bottom right, and a supply curve starts in the bottom left and slopes up to the top right.
Sales Revenue
Sales Price X Sales Volume
Sales Volume
Sales Revenue / Price
Sales Price
Sales Revenue / Sales Volume
Average Cost (Unit Cost)
Total Cost / Output
Gross Profit
Revenue - Cost of Sales
Operating Profit
Gross Profit - Operating Expenses
Net Profit
Operating Profit - Interest
Gross Profit Margin
(Gross Profit / Revenue) X 100
Operating Profit Margin
(Operating Profit / Revenue) X 100
Net Profit Margin
(Net Profit / Revenue) X 100
Current Ratio
Current Assets / Current Liabilities
Acid Test Ratio
Current Assets - Inventories / Current Liabilities
Working Capital
Current Assets - Current Liabilities
Capacity Utilisation
(Current Output / Maximum Output) X 100
What Happens to IMPORTS when a currency APPRECIATES
They get cheaper.
What Happens to EXPORTS when a currency APPRECIATES
They get more expensive.
What Happens to IMPORTS when a currency DEPRECIATES
They get more expensive.
What Happens to EXPORTS when a currency DEPRECIATES
They get cheaper.
Unit Contribution
Selling Price - Variable Cost Per Unit
Total Contribution
Total Revenue - Total Variable Costs
Break-even Output
Fixed Costs / (Sales price per unit – Variable costs per unit)
Margin of Safety
Current Output - Breakeven (units)
Price Elasticity of Demand
%∆ quantity demanded / %∆ in price
Income Elasticity of Demand
%∆ quantity demanded / %∆ in income
