Key formuals Flashcards
1
Q
Revenue
A
selling price per unit x number of units sold
2
Q
Variable costs
A
variable costs per unit x number of units sold
3
Q
Total costs
A
fixed costs + variable costs
4
Q
Profit
A
total revenue-total costs OR
total contribution - fixed costs
5
Q
Market Capitalisation
A
number of issued shares x current share price
6
Q
Expected value of decision with two possible outcomes
A
A&B= (Pay off of A x probability of A)+ (Pay off of B x probability of B)
7
Q
Net gain
A
expected value-initial cost of decision
8
Q
Market Growth
A
(Change in size of the market over a period/original size of the market) x 100
9
Q
Market share
A
(Sales of one product OR Brand Or business/total sales in the market) x 100
10
Q
Added value
A
sales revenue-costs of bought-in goods and services
