Formulas Flashcards
What formula would you use to work out total costs?
Total costs = fixed costs + variable costs
What formula would you use to workout profit?
Profit= total revenue - total costs - fixed costs
What formula would you use to workout total variable costs?
Variable costs = variable cost per unit x number of units sold
What formula would you use to workout total revenue?
Selling price x number of units sold
What formula would you use to workout market capitalisation of a business? ?
Number of issues sold x current share price
What is market size in terms of volume?
It’s the quantity of goods and services produced in a particular market over a period of a time (usually one year)
What is the market size in terms of value?
It’s the total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time
What formula would you use to workout market share ?
Sales of one product, brand or business
__________________________________________ x 100
Total sales in the market
What formula would you use to workout added value?
Sales revenue -costs of bought in goods and services
What formula would you use to workout labour productivity ?
Output per time period
________________________
Number of employees
What formula would you use to workout unit costs?
Total costs of production
__________________________
Number of units of output
produced
What formula would you use to workout capacity utilisation?
Actual output in a given time period
________________________________________________ x 100
Maximum possible output in a given time period
What formula would you use to workout return on investment?
Return on investment
_______________________ x 100
Cost of investment
What formula would you use to workout gross profit?
Sales revenue - cost of sales
What formula would you use to workout profit for year?
Operating profit + profit from other activities - net finance costs - tax
