Formulas Flashcards

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1
Q

Revenue = ?

A

selling price per unit x number of units sold

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2
Q

Variable costs = ?

A

variable cost per unit x number of units sold

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3
Q

Total costs = ?

A

fixed costs + variable costs

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4
Q

Profit = ?

A

total revenue - total costs
OR
total contribution - fixed costs

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5
Q

Market capitalisation = ?

A

number of issued shares x current share price

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6
Q

Net Gain = ?

A

expected value - initial cost of decision

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7
Q

Market growth (%) = ?

A

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

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8
Q

Market share (%) = ?

A

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

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9
Q

Added value = ?

A

sales revenue - cost of brought in goods and services

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10
Q

Labour productivity = ?

A

output over a time period / number of employees

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11
Q

Unit costs = ?

A

total costs/ units of output

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12
Q

Capacity utilisation (%) = ?

A

current output/ maximum possible output x 100

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13
Q

Return on investment (%) = ?

A

profit from the investment / cost of the investment x100

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14
Q

Gross profit = ?

A

revenue - cost of sales

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15
Q

Gross profit margin (%) = ?

A

gross profit/ revenue x 100

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16
Q

Variance = ?

A

budgeted figure - actual figure

17
Q

Contribution per unit = ?

A

selling price - variable costs per unit

18
Q

Total contribution = ?

A

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

19
Q

Break-even output = ?

A

fixed costs/ contribution per unit

20
Q

Margin of safety = ?

A

actual level of output - break-even level of output

21
Q

Labour turnover (%) =

A

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

22
Q

Labour cost per unit = ?

A

labour costs/ units of output