Formulas Flashcards
Market size
Number of sales in an industry x Selling price
Formula of Market share
Total sales of a firm \ total market Sales x 100
Formula of price elasticity of demand
% change in quantity demand / % change in price
( All answers should be negative value )
Formula of income elasticity of demand
% change in quantity demand / % change in income
Formula of revenue
Number of units sold x selling price per unit
Formula of total costs
Total fixed coats + total variable costs
Formula of profit
Total revenue - total costs
Formula of contribution per unit
Selling price per unit - variable cost per unit
Formula of total contribution
Contribution per unit x No. of units
Formula of break even
Fixed costs / contribution per unit
( Always in units not £’s)
Formula of Margin safety
Actual level of output - Break even point
Formula of Gross profit
Sales revenue - cost of Goods (opening stock + purchases - closing stock )
Formula of Net profit
Gross profit - Expenses
Formula of gross profit margin
Gross profit / sales revenue x 100
Formula of Net profit margin
Net profit / sales revenue x 100
Formula of labour productivity
Total output ( per time period )
__________________
Total number of employees ( per time period )
Formula of labour labour absenteeism
Number of staff absent ( per time period )
________________________ X100
Total number of staff days worked ( per time period )
Formula of labour turnover
Number of staff leaving
_________________ X100
Average number of staff employed
Formula of added value
Value of output - Value (costs) of inputs
Formula of capacity utilisation
Actual output
____________ X100
Maximum possible output
Formula of Budget variance
Actual figure - Budgeted value = variance
( Answer is favourable or adverse )
Formula of working capital
Current Assests - current liabilities
Formula of capital employed
Long-term liabilities + shareholders capital
Formula of depreciation ( straight line method )
Historical cost - residual value
_________________
Useful life of Asset
Formula of current ratio
Current Assets
_________________
Current liabilities
Formula of Acid test ratio
Current Assets - stocks
____________
Current liabilities
Formula of Gearing
Long term liabilities ( non-current liabilities )
_____________ x100
Capital employed
Formula of return on capital employed
Net profit before tax
______________ X100
Shareholders funds + long term liabilities
Formula of 3 point moving average
Month A + Month B + Month C
_____________________
3
Then Again the last 3 number
Month B + Month C + Month D
________________
3
