Formulas Flashcards
Market share
(sales of a product / total market sales) x 100
PED
% change in demand / % change in price
YED
% change in demand / % change in income
Net cash flow
total inflows - total outflows
Closing balance
net cashflow + opening balance
Sales volume
sales revenue / selling price
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
Profit
total revenue - total costs
total contribution - fixed costs
margin of safety x contribution per unit
Contribution per unit
selling price per unit - variable cost per unit
Total contribution
contribution per unit x number of units sold
total revenue - total variable costs
Break-even
fixed costs / contribution per unit
fixed costs / selling price - variable cost per unit
Variance
actual - budget
Gross profit
sales revenue - cost of sales
Operating profit
gross profit - overheads
Net profit (PFTY)
operating profit +/- finance costs
Gross profit margin
(gross profit / revenue) x 100
Operating profit margin
(operating profit / revenue) x 100
Profit for the yr (net profit) margin
(profit for the yr / revenue) x 100
Current ratio
current assets / current liabilities
Acid ratio test
(current assets - inventory) / current liabilities
Productivity (labour)
output per period (UNITS) / number of employees in that period
Capacity utilisation
(actual level of output / maximum possible output) x 100
Reorder level
lead time x daily usage + buffer stock
Added value
price product is sold for - cost of making product
Margin of safety
actual output - break-even output
Working capital
current assets - current liabilities
