Formulas Flashcards
Gross profit margin
(gross profit / revenue) x 100
Net profit margin
net profit / revenue
percentage change
((new value - old value) / old value) x 100
percentage decrease
change in price / original price x 100
index for year x
price value for year x / price value for base year x 100
total costs
fixed costs + variable costs
average revenue
revenue / units sold
contribution
selling price - variable costs per unit
profit
total revenue - total costs
marginal revenue
change in total revenue / change in output sold
real value year x
nominal value year X / cpi year X x 100
income elasticity of demand
% change in quantity demanded / % change in income
balance of trade in goods
exports of goods - imports of goods
GDP per capita
total GDP / population
labour productivity
output / number of employees
mark up
price x % mark up
break even
fixed costs / contribution
operating profit margin
gross profit - operating expenses / revenue
margin of safety
actual sales volume - break even volume / actual sales volume
gradient
change in y / change in x
total revenue
quantity x price
average cost
average fixed costs + average variable costs
5 firm concentration ratio
the total market share of the top 5 firms
profit maximisation
marginal revenue = marginal costs
price elasticity of demand
% change in quantity demanded / % change in price
global sales market
sales / total sales x 100
HDI
1/3Life expectancy index x 1/3education index x 1/3income index
planned sales revenue
original revenue + (original revenue x % increase)
capacity utilisation
current output / max possible output x 100
unemployment
number of unemployed / labour force
exchange rates
multiply for foreign currency
divide by foreign currency for £
