Paper 1 Flashcards
Variance Equation
Budgeted figure - Actual figure
Break-even Output Equation
Fixed costs
/
Contribution per unit
Contribution per unit Equation
Selling price - Variable costs per unit
Total Contribution Equation
Contribution Per Unit
X
Unit Sold
- OR -
Total Revenue - Total Variable Costs
Margin of safety equation
Current sales - Break even point / Divided by current sales
Labour Turnover Equation
Number of staff leaving
/
Number of staff employed
(x100)
Retention rate equation
No. employees who remained for whole period
/
No. employee at start of time period
(x100)
Employee costs as % of turnover equation
Employee costs / Turnover (x100)
Labour cost per unit equation
Labour costs / Units of Output
Net Gain Equation
Expected value - Initial cost of decision
Expected Value of a Decision with 2 Possible Outcomes EQUATION
A&B =
[Pay-off of A x Probability of A]
+
[Pay-off of B x Probability of B]
Market capitalisation
Number issued shares
X
Current share price
Profit Equation
- ) Total revenue - Total costs
- ) Total contribution - Fixed costs
Revenue equation
Price per unit X Quantity sold
