calculations Flashcards
(50 cards)
Revenue / Sales / Turnover
number of units sold x selling price per unit
Profit
total revenue - total costs OR
total contribution - fixed costs
Variable Costs
variable cost per unit x number of units sold
Total Costs
fixed costs + variable costs
Average Unit Cost
total costs / output of units
Interest
interest rate x size of loan
Market Capitalisation
number of shares issued x current share price
Expected Value (Decision Tree)
(pay - off of a x probability of a) + (pay - off of b x probability of b)
Net Gain (Decision Tree)
expected value - initial cost of given choice
Sales Growth (%)
change in sales over a given period / existing sales x 100
Market Share (%)
sales of a product OR business / total market sales x 100
Market Growth (%)
change in the size of a market over a period / original size of the market x 100
Added Value
sales revenue - costs of bought-in goods and services (inputs & labour)
PED
% change in the quantity demanded / % change in price
YED
% change in quantity demanded / % change in income
Labour Productivty
output over a time period / number of employees
Capacity Utilisation (%)
actual output / maximum possible output x 100
Return On Investment (ROI) (%)
profit from investment (£) / cost of investment (£) x 100
Gross Profit
revenue - cost of sales
Operating Profit
gross profit - operating expenses
Profit For Year
operating profit + profit from other activities - net finance cost - tax / operating profit - tax / interest
Gross Profit Margin (%)
gross profit / revenue x 100
Operating Profit Margin (%)
operating profit / revenue x 100
Profit For Year Margin (%)
profit for year / revenue x 100
