Formulae Year 1 Flashcards
Profit formula?
TR-TC
Profit using break even
Total contribution - fixed costs
Revenue formula?
Price x Quantity demanded
Total Variable Cost?
Unit cost x Quantity demanded
Total Cost?
Fixed Cost + Total Variable Costs
Break even
Fixed Cost divided by Contribution
Contribution
Selling Price - Variable Costs
Market Capitalisation
Share price x number of shares
Expected Value (decision trees)
Probability x outcome
Net Gain
Expected Value - Cost of decision
Market Share
Company sales/ total market sales x 100
Market Growth
Difference between years/original sales x 100
% growth/decline
difference / original x 100
Labour productivity?
output per period (units)/number of employees
Capacity utilisation?
Actual level of output / Max possible output x 100
Gross profit?
Revenue (sales) - Cost of Sales
Cost of Sales
Opening Stock + Stock purchases - Closing stock
Operating profit?
Gross profit - operating costs (ie running costs like wages)
Profit for the year (net profit)?
Operating profit - interest - tax (ie finance costs)
Budget variance?
Budget - Actual
Net Cash Flow
Cash in - cash out
Margin of Safety?
Expected sales - break even
Total Contribution?
Contribution per unit x number of units sold
Net profit margin?
Net profit / revenue (or sales ) x 100
Gross Profit margin?
Gross Profit / revenue (or sales) x100
ROCE (return on capital employed)?
Operating profit / Capital employed x 100
Labour turnover?
Number of employees leaving/ total number of employees x 100
Labour productivity?
Output per period/number of employees
Labour retention?
Number of employees - number leaving / number of employees x 100
Labour cost per unit?
labour cost / units produced
Employee cost as % of turnover?
Total employee cost/total turnover (sales) x 100
