Maths Flashcards
What is the formula for Total Costs?
Total Costs = Fixed costs + Variable costs
How is Profit calculated?
Profit = Total revenue - Total costs OR Total contribution - Fixed costs
What is the formula for Total Variable Costs?
Total Variable Costs = Variable cost per unit x Number of units sold
What does Sales revenue or Turnover equal?
Sales revenue or Turnover = Selling price per unit x Number of units sold
How is Market capitalisation of a business calculated?
Market capitalisation of a business = Number of issued shares × Current share price
What is the formula for Expected value of a decision with two possible outcomes (A & B)?
Expected value = (Pay-off of A x probability of A) + (Pay-off of B x probability of B)
What is the relationship between the probabilities of outcomes A and B?
Probability of A + Probability of B = 1.0
In a decision tree, how is Net gain calculated?
Net gain = Expected value - Initial cost of decision
What is Market size volume?
Market size volume is the quantity of goods and services produced in a particular market over a period of time, usually one year
Define Market size (value).
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
What does Sales volume refer to?
Sales volume is the quantity of goods and services produced by a particular business over a period of time
What is Sales value?
Sales value is the total sales revenue of a particular business over a period of time
How is Market growth (%) in year ‘X’ calculated?
Market growth (%) in year ‘X’ = (Change in the size of the market between year (X-1) and year X) / Size of the market in year (X-1) x 100
What is the formula for Sales growth (%) in year ‘X’?
Sales growth (%) in year ‘X’ = (Change in sales of product or business between year (X-1) and year X) / Sales of product or business in year (X-1) x 100
How is Market share (%) calculated?
Market share (%) = (Sales of one product OR brand OR business / Total sales in the market) x 100
What is the formula for Price elasticity of demand (PED)?
Price elasticity of demand (PED) = Percentage change in quantity demanded / Percentage change in price x 100
What range indicates Price inelastic demand?
Price inelastic demand has a coefficient in the range 0 to -1
What range indicates Price elastic demand?
Price elastic demand has a coefficient in the range -1 to -∞
How is Added value (value added) calculated?
Added value (value added) = Sales revenue - costs of bought-in goods and services
