Maths Equations Flashcards
Break even output?
Fixed costs / contribution per unit
Contribution per unit?
Selling price per unit - variable cost per unit
Revenue?
Price x quantity sold.
Total costs?
Fixed costs + variable costs
Profit?
Total revenue - total costs
Total variable costs?
Variable costs per unit X no. Of units sold
Expected value?
Probability of outcome X percentage of success/failure.
Net gain ?
Expected value - initial costs.
Market growth (%) ?
New Market size- old Market size
——————————————— x100
Old market size.
Market share (%)?
Sales
——— x100
Total market size
Sales growth (%)?
Sales this year - sales last year
——————————————- X100
Sales last year
Added value?
Sales revenue- cost of bought in goods/services
Capacity utilisation(%)?
Output
————- x100
Maximum capacity
Unit costs?
Total costs
———————
Unit costs
Labour productivity?
Output per period
——————————-
No. Of workers per period.
Labour turnover?
No. Of employees leaving over a given period
————————————————————— x100
Average no. Of employees over a given period
Retention rate?
No. Of employees with 1 or more years service
—————————————————————— x100
Overall workforce numbers
Labour costs per unit?
Total labour costs
————————-
Total units of output.
Re order level?
Lead time (in days) x average daily usage + buffer stock level.
Return on investment(%)?
Return on investment (£)
——————————— x100
Cost of investment (£)
Gross profit?
Sales revenue - cost of sales
Operating profit?
Sales revenue- cost of sales - operating expenses
Profit for the year?
Operating profit + other profit - net finance - tax.
Gross profit margin(%)?
Gross profit
——————- x100
Sales revenue
Operating profit margin (%)?
Operating profit
———————— x 100
Sales revenue
Net cash flow?
Cash inflows - cash outflows
Closing balance?
Opening Balance + net cash flow.
Total contribution?
Total revenue - total variable costs OR contribution per unit x units sold.
Margin of safety?
Actual output - breakeven output.
Employees costs as a % of turnover?
Employee costs
———————x100
Sales turnover
Net gain?
Add the EV’S for each outcome and then subtract the initial costs.
