Formulae Flashcards
total costs
fixed costs + variable costs
profit 1
total revenue - total costs
profit 2
total contribution - fixed costs
variable costs
variable cost per unit x number of units sold
total revenue
selling price per unit x number of units sold
market capitalisation
number of issued share x current share price
expected value
(payoff of A x probability of A) + (payoff of B x probability of B)
net gain
expected value - initial cost of decision
market size (volume)
quantity of goods produced in a market over a year
market size (value)
total sales revenue in a market over a year
sales value
total sales of a business over a year
market growth %
change in market size in a year/ market size in this year x 100
sales growth %
change in sales over the year/ sales this year x100
market share %
sales of one product/brand / total market sales x100
price elasticity of demand
inelastic between 0 and 1
added value
sales revenue - costs of bought-in goods and services
labour productivity
output in time period / number of employees
unit costs
total cost of production / units of output
capacity utilisation %
actual output/ maximum possible output x100
return on investment %
return on investment / cost of investment x100
gross profit
sales revenue - cost of sales
operating profit
sales revenue - cost of sales - operating expenses
profit for the year
operating profit + other profit - net finance costs - tax
contribution per unit
selling price - variable costs per unit
