Formulas Flashcards
Elasticity of Demand
% change in in quantity demanded
__________________
% change in price
Market Share
sales of a business
______________ X100
Total sales in Market
Break even output
Fixed costs
______________
Selling price - variable cost per unit
Break even price
Total cost
_________
Output
Total Cost
Fixed cost + Variable cost
Average cost
Total cost
___________
Output
Average fixed cost
Total fixed cost
____________
Output
Average Variable cost
Total variable cost
_______________
Output
Revenue
Selling price X quantity sold
Profit
Total revenue - total cost
Contribution per unit
Selling price - variable cost per unit
Total contribution
Total revenue - total variable cost
Market Share (%)
Sales of one product
______________ X100
Total market sales
Net Gain
Expected value - cost of decision
Market growth (%)
Change in the size of market
______________X100
Original size of market
Market capitalisation
No. of Shares X current share price
Return on investment
Profit from the investment
______________X100
Cost of the investment
Gross profit
Revenue - sales costs
Profit margins
[type of] profit
____________X100
Revenue
(e.g. Gross, operating, annual)
Variance
Budgeted figure - actual figure
Labour Costs per unit
Labour costs
____________
Units of output
Margin of Safety
Actual level of output - break-even output
Labour turnover (%)
No. of staff leaving
_____________X100
No. of staff at business
Unit Costs
Total costs
__________
No. of units of output
Variable costs
Variable costs per unit X no. units sold
Capacity utilisation (%)
Actual output
_____________X100
Maximum possible output
Labour productivity
Output over a time period
______________
No. of employees
