formulas Flashcards
total costs
fixed costs + variable costs
revenue (sales/turnover)
selling price per unit x number units sold
variable costs
variable costs per unit x number of units sold
profit
total revenue - total costs
or
total contribution - fixed costs
market capitalisation of business
number of issued shares x current share price
expected value of a decision with 2 possible outcomes
)pay of of A x probability of a ) + (pay off of B x probability of B)
net gain
expected value - initial cost of decision
market growth %
change in size of the market over period ÷ original size of market ,,, X 100
market share %
sales of 1 product/brand/business ÷ total sales in market X 100
added value
sales rev - costs of bought in goods/services
labour productivity
output over period of time ÷ number of employees
unit costs ( average costs)
total costs. ÷ number of units of output
capacity utilisation %
actual output ÷ maximum possible output X 100
roi return on investment ÷
profit from investment ÷ cost of investment X 100
gross profit
rev - cost of sales
profit from operations
operating profit = gross profit - operating expenses
profit of the year
operating profit + profit from other activities - net findable costs - tax
gross profit margin %
gross profit ÷ revenue x 100
Profit from operations margin
operating profit margin % = op prof ÷ revenue x 100
profit of year ÷
profit for year ÷ revenue x 100
variance
budgeted figure - actual figure
contribution per unit
selling price - variable costs per unit
total contributions
contribution per unit x units sold
OR
total revenue - total variable costs
break even output
fixed costs ÷ contribution per unit
