ALL BUSINESS EQUATIONS Flashcards
(35 cards)
Revenue =
Selling price per unit x number of units sold
Variable costs =
Variable cost per unit x number of units sold
Total costs =
fixed costs + variable costs
Profit =
total revenue - total cost
Market Capitalisation =
Number of issued shares x current share price
Net gain =
Expected value - initial cost of decision
Market growth (%) =
Change in the size of the market over a period / original size of the market x 100
Market share (%) =
Sales of one product OR brand OR business / Total sales in the market x 100
Added value =
Sales revenue - costs of bought in goods and services
Labour productivity =
Output per time period / number of employees
Capacity utilisation (%) =
(actual output/maximum possible output) x100
Unit costs =
total cost / units of output
Return on investment (%) =
Profit from the investment (£) / Cost of the investment (£) × 100
Gross profit margin (%) =
Gross profit/sales revenue x 100
Gross profit =
revenue - cost of goods sold
Operating profit =
gross profit - operating expenses
Net profit =
operating profit + gross profit - net finance costs + tax
Profit for year margin =
Profit for the year / sales revenue x 100
Operating profit margin =
Operating profit / sales revenue x 100
Variance =
budgeted figure - actual figure
Contribution per unit =
Selling price - variable costs per unit
Break-even output =
Fixed costs / contribution per unit
Margin of safety =
Actual output - break even output
Labour turnover (%) =
(Number of staff leaving / number of staff employed) x 100
