Formulas Flashcards
market share =
(sales of a total market held by one product or company / total market sales) x 100
market growth =
(change in size of the market / original size of the market) x 100
sales growth =
(change in sales of the business / original sales of the business) x 100
profit =
total revenue - total costs
profit (using contribution) =
total contributions - fixed costs
total revenue =
selling price x number of units sold
total costs =
fixed costs + variable costs
contribution per unit =
selling price per unit - variable cost per unit
total contribution =
contribution per unit x number of units sold
break even occurs when…
total revenue = total costs
break even output (units) =
fixed costs / contribution per unit
margin of safety =
current output - breakeven output
total variable costs =
variable cost per unit x number of units
added value =
selling price - cost of bought in goods/services
gross profit =
sales revenue - variable costs
operating profit =
sales revenue - variable costs - fixed costs
gross profit margin =
(gross profit / sales revenue) x 100
operating profit margin =
(operating profit / sales revenue) x 100
return on capital employed =
(return on investment / cost of investment) x 100
return on investment =
(net profit / capital invested) x 100
labour turnover =
(number of leavers / average number of employees) x 100
labour productivity =
total value of output / total number of employeeds
labour absenteeism =
(average number of staff absent on one day / total number of staff) x 100
capacity utilisation =
(current output / maximum output) x 100
unit cost =
total costs / output
labour cost per unit =
labour costs / units of output
market capitalisation of a business =
number of issues shares x current share price
in a decision tree, net gain =
expected value - initial cost of decision
expected value of a decision with two possible outcomes =
(pay off of A x probability of A) + (pay off of B x probability of B)
reorder quantity =
lead times (in days) x average daily usage
profit for the year =
operating profit + profit from other activities - net finance costs - tax
employee retention rate =
(number of employees at end of period - number of leavers / number of employees at end of period) x 100
employee costs as a percentage of turnover =
(employee costs / sales turnover ) x 100
