Paper 1 formulas

Question 1

What is the formula for percentage change?

Answer 1

New - Old/Old x 100

Question 2

What is the formula for capital employed?

Answer 2

Non current liabilities + Total equity

Question 3

What is the formula for Return on capital employed?

Answer 3

Operating profit/Capital employed x 100

Question 4

What is the formula for Average net return?

Answer 4

(Total inflows - Investments)/number of years

Question 5

What is the formula for average rate of return (ARR)

Answer 5

Average net return/investment x 100

Question 6

What is the formula for Gearing?

Answer 6

Non current liabilities/Capital employed x 100

Question 7

What is the formula for Labour productivity?

Answer 7

Total output/Average number of employees

Question 8

What is the formula for Labour turnover?

Answer 8

Number of staff leaving/Average number of staff x 100

Question 9

What is the formula for Labour retention?

Answer 9

Number of staff staying/Average number of staff x 100

Question 10

What is the formula for Cost per unit?

Answer 10

Total costs/quantity produced

Question 11

What is the formula for Price elasticity of demand?

Answer 11

Percentage change in quantity demanded/Percentage change in price

Question 12

What is the formula for Labour costs per unit?

Answer 12

Total labour costs/Quantity produced

Question 13

What is the formula for Income elasticity of demand?

Answer 13

Percentage change in quantity demanded/Percentage change in income

Question 14

What is the formula for Market share?

Answer 14

Business sales/Total market sales x 100