Formulas Flashcards
Revenue
Also known as sales/turnover
Selling price per unit x Number of units sold
Variable cost
Variable cost per unit x number of units sold
Total costs
Fixed costs + Variable costs
Profit
Total revenue - Total costs
OR
Total contribution - Fixed costs
Market capitalisation
Number of shares issued x share price
Expected value of a decision with two possible outcomes eg A & B
(Pay off of A x probability of A) + (Pay off of B x probability of B)
Net Gain
Expected value - Initial cost of decision
Market growth (%)
(Change in size of market over a period)/
(Original size of market)
X100
Market share (%)
(Sales of one product OR Brand OR Business) / (Total sales in the market)
x100
Added value
Sales revenue - costs of bought-in goods and services
Labour productivity
(Output over a time period)/(Number of employees)
Unit costs
(Total costs) / (Number of units of output)
Capacity utilisation (%)
(Actual output) / (Maximum possible output)
x100
Return on investment (%)
(Profit from the investment) / (Cost of the investment)
x100
Gross profit
Revenue - Cost of sales