formulas Flashcards
Total costs =
Fixed costs + variable costs
Profit =
Total revenue - Total costs
Variable Costs =
variable costs per unit x number of units sold
Total revenue =
Selling price per unit x number of units sold
Market capitalisation of a business =
number of issued shared x current share price
In a decision tree net gain =
Expected value - initial cost of decision
Market size (volume)???
is the quantity of goods and services produced in a particular market over a period of times (usually one year)
Market size (value)???
is 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????
is the quantity of goods and services produced by a particular business over a period of time (usually one year)
Sales Value????
is the total sales revenue of a particular business over a period of time (usually one year)
Market Growth % in year(x) =
size of the market in year (x-1)
Sales growth % in year(x) =
Sales of product or business in year (x-1)
Market share (%) =
Sales of one product or brand or business
————————————————————– x 100
Total sales in the market
price elasticity of demand =
percentage change price
Added value =
Sales revenue - costs of bought in goods and services
labour productivity =
number of employees
units costs =
number of units of output produced
capacity utilisation (%) =
actual output in a given time period
——————————————————————- x 100
maximum possible output in a given time period
return on investment (%) =
return on investment (£)
———————————– x 100
cost of the investment (£)
Gross profit =
Sales Revenue - costs of sales
profit from operations = operating profit =
sales revenue - costs of sales - operating expenses
profit of year =
operating profit + profit from other activities - net finance costs - tax
contribution per unit =
selling price - variable costs per unit.
1) total contribution =
2) total contribution =
1) contribution per unit x units produced or sold
2) total revenue - total variable costs
break even output =
contribution per unit
Margin of safety =
Actual level of output - breakeven level of output
Gross profit Margin (%) =
gros profit
—————— x 100
Sales Revenue
Profit from operations margin = operating profit margin (%) =
operating profit
———————– x 100
Sales Revenue
Profit for year margin (%) =
profit for year
——————- x 100
Sales revenue
Labour turnover (%) =
number of staff leaving during the year
—————————————————————————x 100
Average number of staff employed by the business during the year.
Employee costs as percentage of turnover =
employee costs
———————- x 100
Sales Turnover
Labour cost per unit =
units of output
Return of capital employed (ROCE) (%) =
operating profit
————————————————- x 100
total equity + non-current liabilities
