formulaes Flashcards
market share
(sales of a product / total market sales) x100
price elasticity of demand
% change in quantity demanded / % change in price
income elasticity of demand
% change in quantity demanded /% change in income
cost plus pricing
cost per product + % of cost ( mark up aka desired profit margin)
sales volume
total number of units sold over a period of time
sales revenue
number of units sold x unit price
total variable costs
number of units sold x variable cost per unit
total costs
fixed costs + variable costs
gross profit
sales revenue - cost of sales
operating profit
gross profit - overheads
net profit
operating profit +/- finance costs
opening balance
previous months closing balance
margin of safety
actual / projected sales volume - break even sales home
closing balance
opening balance + net cash flow
net cash flow
total inflows - total outflows
break even
fixed costs / contribution per unit
contribution per unit
selling price per unit - variable cost per unit
total contribution
contribution per unit x number of unit sold
budget variance
actual- budget
gross profit margin
(gross profit / sales revenue) x 100
operating profit margin
operating profit / sales revenue x 100
net profit margin
net profit / sales revenue x 100
return on capital employed
operating profit : net profit / capital employed x100
current ratio
current assets/ current liabilities
