Formulas

Question 1

Revenue

Answer 1

selling price per unit x quantity of units sold

Question 2

Total Variable Costs

Answer 2

variable cost per unit x number of units sold

Question 3

Total Costs

Answer 3

fixed costs + variable costs

Question 4

Profit

Answer 4

total revenue - total costs

Question 5

Market Capitalisation

Answer 5

number of issued shares x current share price

Question 6

Market Growth (%)

Answer 6

new market size - old market size / old market size x 100

Question 7

Market Share (%)

Answer 7

sales / total market size x 100

Question 8

Sales Growth (%)

Answer 8

sales this year - sales last year / sales last year x 100

Question 9

Price Elasticity of Demand

Answer 9

% change in quantity demanded / % change in price

Question 10

Income elasticity of demand

Answer 10

% change in quantity demanded / % change in real income

Question 11

Added Value

Answer 11

sales revenue - cost of bought-in goods and services

Question 12

Capacity Utilisation (%)

Answer 12

output / capacity x 100

Question 13

Unit Cost

Answer 13

total costs / units output

Question 14

Labour Productivity

Answer 14

output per period / number of employees

Question 15

Return on Investment (£)

Answer 15

financial gain from investment - cost of investment

Question 16

Return on Investment (%)

Answer 16

return on investment (£) / cost of investment (£)

Question 17

Percentage change in profit

Answer 17

current year’s profit - previous year’s profit / previous year’s profit x 100

Question 18

Gross Profit

Answer 18

sales revenue - cost of sales

Question 19

Operating Profit

Answer 19

sales revenue - cost of sales - operating expenses

Question 20

Profit of the Year

Answer 20

operating profit + other profit + net finance costs - tax

Question 21

Gross Profit Margin (%)

Answer 21

gross profit / sales revenue x 100

Question 22

Operating Profit Margin (%)

Answer 22

operating profit / sales revenue x 100

Question 23

Profit of the Year Margin (%)

Answer 23

profit of the year / sales revenue x 100

Question 24

Contribution per unit

Answer 24

selling price per unit - variable costs per unit

Question 25

Total contribution

Answer 25

total revenue - total variable costs OR contribution per unit x number of units sold

Question 26

Break-even output

Answer 26

fixed costs / contribution per unit

Question 27

margin of safety

Answer 27

actual output - break-even output

Question 28

Labour Productivity

Answer 28

output per period / number of employees

Question 29

Labour Cost per unit

Answer 29

labour costs / units of output

Question 30

Employee costs as a % of turnover

Answer 30

employee costs / sales turnover x 100

Question 31

Labour Turnover (%)

Answer 31

number of staff leaving / average number of staff employed

Question 32

Labour Retention (%)

Answer 32

number of staff employed at end of period - number of leavers / number of staff employed at the end of period x 100

Question 33

Percentage Change

Answer 33

new figure - previous figure / previous figure x 100

Question 34

New Figure

Answer 34

percentage change x previous figure / 100 + previous figure