Formulas Flashcards
Labour mobility
number of staff leaving
———————————- x 100
average staff employed
Market share
firm’s sales
——————————- x 100
total sales in market
Market growth
market size (2nd yr) - market size (1st yr)
——————————————————- x 100
market size (1st yr)
Price elasticity of demand
% change in price
Contribution per unit
price per unit - variable cost per unit
Total contribution (1)
total sales revenue - total variable costs
total contribution (2)
contribution per unit x number of units sold
Contribution and profit
total contribution - total fixed costs
Margin of safety
current output - break-even output
Break even quantity
contribution per unit
total revenue
price per unit x quantity sold
total costs
total fixed costs + total variable costs
profit
total revenue - total costs
break even revenue
fixed costs
—————————— x price per unit
contribution per unit
targeted profit output
contributions per unit
Defect rate
number of defective units
————————————– x 100
total output
labour productivity
total hours worked
working capital
current assets - current liabilities
working capital productivity
working capital
operating leverage
quantity x (price - variable cost per unit) - fixed costs
total revenue
price per unit x quantity sold
cost of sales
opening stock + purchases - closing stock
straight line depreciation
expected useful life of asset
units of production depreciation
cost basis of asset
- salvage value
—————————— x actual u produced
estimated total units
to be produced over
estimated useful life
net present value
total present values - original cost
