Paper 1 Formulas Flashcards
Market Share (%)
Business Sales / Market Sales X 100
Market Size
Total value of all business’s sales in the market
Market Growth (%)
Difference / Original X 100
Total Costs (£)
Fixed Costs + Total Variable Costs
Total Variable Costs (£)
Variable Cost Per Unit X Number of Units
Revenue (£)
Selling Price X Quantity Sold
Profit (£)
Total Revenue – Total Costs
Break Even (Units)
Fixed Costs / Contribution
Contribution (per unit) (£)
Selling Price per unit – Variable Cost per unit
Total Contribution
Total Revenue – Total Variable Costs
or
Contribution per unit X Number of Units
Margin of Safety
Actual Level of Output - Break Even Point output
Net Cash Flow (£)
Inflows – Outflows
Gross Profit (£)
Sales Revenue – Cost of Sales
Net Profit (£)
Sales Revenue – Cost of Sales – Expenses
[or] Gross Profit – Expenses
Gross Profit Margin (%)
Gross Profit / Revenue X 100
Net Profit Margin (%)
Net Profit / Revenue X 100
Labour turnover (%)
Number of Leavers / Average Number of Employees X 100
Labour productivity (Units)
Output / Number of Employees
Added Value (£)
Value of Output – Value (Costs) of Inputs
[Selling Price – Cost of raw materials]
Capacity Utilisation (%)
Actual Output / Maximum Possible Output X 100
Lead Time (Time)
Time Difference between re-order quantity and stock increase
Re-Order quantity (Units)
Increase in stock level when delivery received
