Unit 4 operation decisions formula

Question 1

What is the formula of added value

Answer 1

Sales revenue - cost of bough in goods and services

Question 2

What is the formula for capacity utilisation

Answer 2

Output / Capacity x 100

Question 3

What is the formula for labour productivity

Answer 3

Output per period / number of employees

Question 4

What is the formula for percentage change in profit

Answer 4

(Current years profit - previous years profit) / previous years profit x 100

Question 5

What is the formula for gross profit

Answer 5

Sales revenue - cost of sales

Question 6

What is the formula for operating profit

Answer 6

Gross profit - operating expenses

Question 7

What is the formula for net profit

Answer 7

Operating profit - tax/interest

Question 8

What is the formula for gross profit margin (%)

Answer 8

Gross profit / revenue x 100

Question 9

What is the formula for operating profit margin (%)

Answer 9

Operating profit / revenue x 100

Question 10

What is the formula for net profit margin (%)

Answer 10

Net profit / revenue x 100