Formulas

Question 1

Revenue = ?

Answer 1

selling price per unit x number of units sold

Question 2

Variable costs = ?

Answer 2

variable cost per unit x number of units sold

Question 3

Total costs = ?

Answer 3

fixed costs + variable costs

Question 4

Profit = ?

Answer 4

total revenue - total costs
OR
total contribution - fixed costs

Question 5

Market capitalisation = ?

Answer 5

number of issued shares x current share price

Question 6

Net Gain = ?

Answer 6

expected value - initial cost of decision

Question 7

Market growth (%) = ?

Answer 7

change in the size of the market/ original size of the market x 100

Question 8

Market share (%) = ?

Answer 8

sales of one product OR brand OR business / total sales in the market x 100

Question 9

Added value = ?

Answer 9

sales revenue - cost of brought in goods and services

Question 10

Labour productivity = ?

Answer 10

output over a time period / number of employees

Question 11

Unit costs = ?

Answer 11

total costs/ units of output

Question 12

Capacity utilisation (%) = ?

Answer 12

current output/ maximum possible output x 100

Question 13

Return on investment (%) = ?

Answer 13

profit from the investment / cost of the investment x100

Question 14

Gross profit = ?

Answer 14

revenue - cost of sales

Question 15

Gross profit margin (%) = ?

Answer 15

gross profit/ revenue x 100

Question 16

Variance = ?

Answer 16

budgeted figure - actual figure

Question 17

Contribution per unit = ?

Answer 17

selling price - variable costs per unit

Question 18

Total contribution = ?

Answer 18

contribution per unit x units sold
OR
total revenue - total variable costs

Question 19

Break-even output = ?

Answer 19

fixed costs/ contribution per unit

Question 20

Margin of safety = ?

Answer 20

actual level of output - break-even level of output

Question 21

Labour turnover (%) =

Answer 21

number of staff leaving/ number of staff employed by the business x100

Question 22

Labour cost per unit = ?

Answer 22

labour costs/ units of output

Question 23

return on capital employed = ?

Answer 23

operating profit/ capital employed x 100

Question 24

gearing = ?

Answer 24

non - current liabilities/ capital employed x 100

Question 25

current ratio = ?

Answer 25

current assets/ current liabilities

Question 26

payable days = ?

Answer 26

payables/ cost of sales x 365

Question 27

receivable days = ?

Answer 27

receivables / revenue x 365

Question 28

inventory turnover = ?

Answer 28

cost of sales / average inventories held