Formulas Flashcards
1
Q
Labour productivity
A
Total output/ number of employees
2
Q
Unit costs
A
Total costs/ total output
3
Q
Capacity utilisation
A
Existing output/ maximum output X 100
4
Q
Total costs
A
Fixed costs + variable costs
5
Q
Revenue
A
Quantity sold X average selling price
6
Q
Profit
A
Total revenue - total costs
7
Q
Price elasticity of demand
A
Percentage change in quantity demanded / percentage change in price
8
Q
Contribution per unit
A
Selling price of one unit of output - variable cost of producing that output
9
Q
Break even output
A
Fixed costs/ contribution per unit
10
Q
Labour turnover
A
Number of staff leaving during a year x 100 / average number of staff
11
Q
Employee retention
A
Number of employees employed for one year or more x 100 / average number of staff
12
Q
Gross profit
A
Sales revenue - direct costs
