Formulas

Question 1

Total costs

Answer 1

Fixed costs + variable costs

Question 2

Profit

Answer 2

Total revenue - total costs - fixed costs

Question 3

Variable costs

Answer 3

variable cost per unit x number of units sold

Question 4

Total revenue

Answer 4

selling price per unit x number of units sold

Question 5

Market capitalisation of a business

Answer 5

number of issued shares x current share price

Question 6

In a decision tree net gain

Answer 6

expected value - initial cost of decisio

Question 7

market growth % in a year

Answer 7

change in the size of the market between year 1 and 2 / size of market in year 1 x 100

Question 8

Sales growth % in year 2

Answer 8

change in sales of product or business between year 1 and 2 / sales of product or business in year 1 x 100

Question 9

Market share %

Answer 9

Sales of one product/brand or business / total sales in the market x100

Question 10

price elasticity of demand

Answer 10

percentage change in quantity demand / percentage change price

Question 11

labour productivity

Answer 11

output per time period / number of employees