formulas Flashcards
% mark up
(Difference in price/original cost) X 100
% change
((New value - old value)/old value) X 100
Price elasticity of demand (PED
% change in quantity demanded/% change in price
Income elasticity of demand (YED)
% change in quantity demanded/% change in income
opening balance
cash balance at the start of the month
net cash flow
cash inflows - cash outflows
closing balance
opening balance + net cash flow
total costs
fixed costs + variable costs
sales revenue
selling price X quantity sold
cumulative flow
sum of all closing balances
total variable costs
variable cost per unit X quantity sold
profit
total revenue - total costs
break even output
fixed costs/contribution per unit
contribution per unit
selling price per item - variable cost per item
total contribution
contribution per unit X quantity sold
budget variance
budget amount - actual amount
margin of safety
actual output - break even ouput
profit
contribution - fixed costs
gross profit
sales revenue - cost of sales
gross profit margin
(gross profit/revenue) X 100
operating (net) profit
gross profit - (fixed costs+variable costs)
operating profit margin
(operating profit/revenue) X 100
net capital employed
non-current liabilities + equity
acid test (quick ratio)
current assets - stock)/current liabilities
current ratio
current assets/current liabilities
capital intensity
capital goods/fixed costs X 100
labour productivity
output/number of employees
labour turnover
number of employees leaving/total number of employees X 100
average cost per unit
total production costs/total output
capacity utilisation
actual output/maximum possible output X 100
