formulas

Question 1

revenue

Answer 1

selling price per unit X number of units sold

Question 2

market growth

Answer 2

change in the size of the market / original size of the market X 100

Question 3

labour productivity

Answer 3

output over time/ number of employees

Question 4

gross profit

Answer 4

revenue - cost of sales

Question 5

operating profit

Answer 5

gross profit - other overheads

Question 6

profit of the year

Answer 6

net profit - tax - interest

Question 7

gross profit margin

Answer 7

gross profit/ revenue X 100

Question 8

variance

Answer 8

budgeted figure - actual figures

Question 9

contribution per unit

Answer 9

selling pruce - variable cost per unit

Question 10

total contribution

Answer 10

contribution per unit - unit sold

Question 11

break even

Answer 11

fixed costs - contriburion per unit

Question 12

margin of safety

Answer 12

actual level of output - berakeven level of output

Question 13

labour turnover

Answer 13

number of staff leaving/ number of staff employed X 100

Question 14

return on capital employed

Answer 14

operating profit/ total equity + non current liabilitities X 100

Question 15

current ratio

Answer 15

current assets/ current liabilities

Question 16

gearing ratio

Answer 16

non current liabilities/ total equity + non current liabilities X 100

Question 17

average rate of return

Answer 17

average annual return/ initial cost of project X 100