Formulas Flashcards
Revenue
Selling price per unit × Number of units sold
Variable costs =
Variable cost per unit × Number of units sold
Total costs
Fixed costs + Variable costs
Profit
Fixed costs + variable costs
Market capitalisation of a business
mber of issued shares × Current share price
Dividend yield (%) =
Dividend per share (£) =
Dividend per share (pence) divided by Share price (pence) x 100
Total costs
Fixed costs + Variable costs
Profit
Total revenue - Total costs OR Total contribution - Fixed costs
Sales revenue or Turnover
Selling price per unit × Number of units sold
Market capitalisation of a business
Number of issued shares × Current share price
Expected value of a decision with two possible outcomes - A & B =
(Pay-off of A × probability of A) + (Pay-off of B × probability of B)
N.B. Probability of A + Probability of B = 1.0
In a decision tree Net gain =
Expected value - Initial cost of decision
Market size volume
the quantity of goods and services produced in a particular market over a period of time usually one year .
Market size (value)
the total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time (usually one year).
Sales volume
the quantity of goods and services produced by a particular business over a period of time (usually one year).
Market growth (%) in year’X’
Change in the size of the market between year (X-1) and year X divided by Size of the market in year (X-1) x100
Sales growth % in year’X’
Change in sales of product or business between year (X-1) and year X divided by Sales of product or business in year (X-1) x100
