Maths business formulas Flashcards
Market Size
- Total of all businesses in the market (the total amount spent by customers buying products or the physical quantity of products that are produced and sold)
Market share
sales of a business / total sales in the market
X 100
Total revenue
Selling price x quantity sold
total cost
fixed cost + variable cost
profit
total revenue - total cost
break even point
fixed costs / (selling price per unit - variable cost per unit)
Contribution
selling price per unit - variable cost per unit
Margin of safety
current output level - break even point
gross profit
sales revenue - cost of goods sold (cost of sales)
gross profit margin
gross profit / sales X 100
net profit margin
net profit / sales X 100
Labour productivity
output (per period) / number of employees (per period)
Labour turnover
number of staff leaving / average number of staff employed X 100
Labour absenteeism
total number of staff absence days over a year / total number of working days that should have been worked X 100
Added value
price of finished good - cost of purchasing raw materials
