formulas Flashcards
revenue
selling price per unit x number of units sold
variable costs
variable clot per unit x quantity units sold
total costs
fixed + variable costs
profit
total revenue - total costs
total contribution - fixed costs
market capitailisation
number of issues shared x current share price
expected value of a decision with two possible outcomes
(pay off A x probability7 of A) + (pay off 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 the market)
x 100
market share (%)
sales of one product or brand or business / total sales in the market
x 100
added value
sales revenue - costs of brought-in good and services
labour productivity
output over a time period / number of employees
unit costs (average costs)
total costs / number of units outputs
capacity utilisation %
actual output / maximum possible output
return on investment
profit from the investment / cost of investment
x 100
gross profit
revenue - cost of sales
profit from operations
gross profit - operating expenses
profit for a year
operating profit + profit from other activities - net finance costs - tax
gross profit margin
gross profit / revenue
x100
operating profit margin
operating profit / revenue
x 100
profit for year margin
profit for year / revenue
x 100
variance
budgeted figure - actual figure
contribuion per unit
selling price - variable cost per unit
total contribution
contribution per unit x units sold
total revenue - total variable costs
break even output
fixed costs / contribution per unit