Maths calculations needed

Question 1

Give the formula for % change

Answer 1

new value - old value/ old value x100

Question 2

Give the formula for price elasticity of demand

Answer 2

% change in quantity demanded/ % change in price

Question 3

Give the formula for income elasticity of demand

Answer 3

% change in quantity demanded/ % change in income

Question 4

Give the formula for profit

Answer 4

total revenue - total costs

Question 5

Give the formula for profit in terms of contribution

Answer 5

total contribution - fixed costs

Question 6

Give the formula for total costs

Answer 6

fixed costs + variable costs

Question 7

Give the formula for variable costs

Answer 7

variable cost per unit x number of units sold

Question 8

Give the formula for total revenue

Answer 8

sell price x number of units sold

Question 9

Give the formula for gross profit

Answer 9

sales revenue - cost of sales

Question 10

Give the formula for operating profit

Answer 10

sales revenue - cost of sales - operating expenses

Question 11

Give the formula for profit for the year

Answer 11

operating profit + profit from other activities

Question 12

Give the formula for contribution per unit

Answer 12

sell price - varaible costs per unit

Question 13

Give the formula for total contribution

Answer 13

contribution per unit x number of units sold

Question 14

Give the formula for breakeven output

Answer 14

fixed costs/ contirbution per unit

Question 15

Give the formula for cashflow

Answer 15

cash in - cash out

Question 16

Give the formula for current ratio

Answer 16

current assets/ current liabilities

Question 17

Give the forumla for acid test ratio

Answer 17

current assets - stock/ current liabilities

Question 18

Give the formula for gross profit margin

Answer 18

gross profit/ sales revenue x100

Question 19

Give the formula for operating profit margin

Answer 19

operating profit/ sales revenue x100

Question 20

Give the forumla for capacity utilisation

Answer 20

actual output in given time period/ maximum possible output in given time period x100

Question 21

Give the forumla for labour producitivity

Answer 21

output per time period/ number of employees

Question 22

Give the formula for unit costs

Answer 22

total costs of production/ number of units of output produced

Question 23

Give the formula for added value

Answer 23

sales revenue - costs of bought in goods & services

Question 24

Give the formula for margin of safety

Answer 24

actual level of output - breakeven level of output

Question 25

give formula for variance

Answer 25

actual figure - budgeted figure

Question 26

give formula for gearing

Answer 26

non current liabilities /
total equity + non current liabilities

x100

Question 27

closing balance

Answer 27

opening balance + net cash flow

Question 28

net capital employed

Answer 28

non-current liabilities + equity

Question 29

capital intensity

Answer 29

capital goods/ fixed costs x100

Question 30

labour turnover

Answer 30

no. of employees leaving/ total no. of employees

x100

Question 31

capacity utilisation

Answer 31

actual output/ max poss output x100

Question 32

inventory turnover

Answer 32

cost of sales/ inventory held

Question 33

receivables days

Answer 33

receivables x 365/ sales

Question 34

payables days

Answer 34

payables x 365/ cost of sales

Question 35

return on capital employed (ROCE)

Answer 35

operating profit b4 tax/
(total equity + non current liabilities)

x100

Question 36

average rate of return (ARR)
-looks at total accounting return

Answer 36

total net profit / no. years/
initial cost

x100

Question 37

net present value

Answer 37

cash flow x discount factor = present value

add all present values to get overall NPV

Question 38

payback

Answer 38

intial investment/ cash inflow