Key Formulas

Question 1

Unit contribution

Answer 1

P - UVC

Question 2

Working capital

Answer 2

Current assets - current liabilities

Question 3

Contribution per unit

Answer 3

Selling price of 1 item - variable costs of 1 item

Question 4

Margin of safety

Answer 4

Q- BEQ

Question 5

Total Contribution

Answer 5

TR - TFC

Question 6

Operating profit

Answer 6

Gross profit - operating expenses

Question 7

Market growth

Answer 7

Change in market size over period / original market size x 100

Question 8

Total Costs

Answer 8

FC + VC

Question 9

Acid test ratio

Answer 9

Current assets-inventories / current liabilities

Question 10

Net profit

Answer 10

Operating profit- interest

Question 11

Current Ratio

Answer 11

Current assets / current liabilities

Question 12

Net profit margin

Answer 12

Net profit / revenue x 100

Question 13

PED

Answer 13

Percentage change in quantity demanded / percentage change in price

Question 14

Market share

Answer 14

Sales of firm A / total sales in the market or industry x100

Question 15

BER

Answer 15

BEQ x T

Question 16

Contribution

Answer 16

Sales revenue - variable costs

Question 17

Sales volume

Answer 17

Sales revenue / selling price

Question 18

Revenue

Answer 18

Price x quantity

Question 19

Gross profit

Answer 19

Revenue - cost of sales

Question 20

Total contribution

Answer 20

Contribution per unit x units sold

Question 21

Profit

Answer 21

Total revenue- total costs

Question 22

Gross profit margin

Answer 22

Gross profit / revenue x 100

Question 23

Break Even output

Answer 23

Fc / unit contribution

Question 24

Variable cost

Answer 24

Variable cost per unit x number of units sold

Question 25

YED

Answer 25

Percentage change in quantity demanded / percentage change in income

Question 26

Calculating a percentage

Answer 26

New - old / old x100

Question 27

Operating profit margin

Answer 27

Operating profit / revenue x 100