Unit 1 Flashcards
Added Value
sales revenue - costs of bought - in goods and services
Market size (£)
Value (£)
Total number of units sold in the market X average selling price
Market size (units)
Volume = amount
Total number of units sold in the market
Market Growth
(change in market size / original market size) X 100
Market Share
(sales of a product or business / total sales in market) X 100
Total Revenue
selling price per unit X number of units sold
Total costs
Total fixed costs + total variable costs
Total Variable Costs
variable costs per unit X number of units produced or sold
Profit
total revenue - total costs
Contribution per unit
Selling price per unit - variable costs per unit
Total Contribution
contribution per unit X units produced or sold
OR
Total revenue - total variable costs
Break Even Output
fixed costs / contribution per unit
