Business Equations Flashcards
(41 cards)
revenue?
Selling Price per Unit x Quantity Sold
total variable costs?
Variable cost per unit x Number of units sold
total costs?
Fixed costs + Variable costs
one formula for profit?
Total Revenue - Total costs
another formula for profit?
Total contribution - Fixed costs
market capitalisation of a business?
Number of issued shares x current share price
expected value of a decision with two payable outcomes?
(Pay-off of A x probability of A) + (Pay-off of B x probability of B)
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 *100
market share?
Sales of one product OR brand OR business/ Total sales in the market * 100
added value?
Sales revenue - costs of bought-in goods and services
labour productivity?
Output over a time period/ Number of employees
unit/average costs?
Total costs/ Number of units of output
capacity utilisation?
Actual output/ Maximum possible output * 100
return of investment?
Profit from the investment/ Cost of the investment * 100
gross profit?
Revenue - Cost of sales
profit from operations/ operating profit?
Gross profit - operating expenses
profit for the year?
Operating profit + Profit from other activities - Net finance cost - Tax
gross profit margin ?
Gross Profit/ Revenue *100
operating profit margin?
OP/ Revenue *100
profit of the year margin?
PFY/ REV * 100
variance?
Budgeted figure - Actual figure
contribution per unit?
Selling Price - Variable costs per unit
one formula for total contribution?
Contribution per unit x Units Sold
