Calculations - THEMES 1,2&3

Question 1

Percentage change:

Answer 1

(difference between new & original/ original) x100

Question 2

market growth (figure when given the old figure and % increase):

Answer 2

value x (1 + converted decimal)

Question 3

market share:

Answer 3

you business value/ market value

Question 4

price elasticity of demand (PED):

Answer 4

% change in quantity demanded/ % change in price

Question 5

Income elasticity of demand (YED):

Answer 5

% change in quantity demanded/ % change in real income

Question 6

total revenue:

Answer 6

sales x selling price per unit

Question 7

total variable costs:

Answer 7

variable cost per unit x output

Question 8

total costs:

Answer 8

total variable costs + total fixed costs

Question 9

net cash flow: (2 calculations)

Answer 9

receipts - payments

inflows - outflows

Question 10

opening balance:

Answer 10

equals previous months closing balance

Question 11

closing balance:

Answer 11

opening balance + net cash flow

Question 12

contribution per unit:

Answer 12

selling price per unit - variable costs per unit

sppu - vcpu

Question 13

breakeven output:

Answer 13

fixed cost/ contribution per unit

Question 14

total contribution:

Answer 14

contribution per unit x output

Question 15

margin of safety:

Answer 15

actual sales output - breakeven level

Question 16

profit:

Answer 16

total revenue - total costs

Question 17

variance:

Answer 17

actual - budgeted figure

Question 18

profit margins:

Answer 18

(GP or OP or NP/ revenue) x100

Question 19

gross profit:

Answer 19

revenue - cost of sales

Question 20

operating profit:

Answer 20

gross profit - overheads

Question 21

net profit:

Answer 21

operating profit - taxation

Question 22

current ratio:

Answer 22

current assets/ current liabilities

Question 23

acid test ratio:

Answer 23

current assets - stock/ current liabilities

Question 24

productivity:

Answer 24

output/ number of employees

Question 25

capacity utilisation:

Answer 25

(current capacity level/total capacity) x100

Question 26

gearing:

Answer 26

(non current liabilities/ capital employed) x100

Question 27

return on capital employed: (2)

Answer 27

(operating profit/capital employed) x100 | (operating profit/ total assets - current liabilities) x100

Question 28

payback:

Answer 28

sum invested/ net cash per time period

Question 29

average rate of return:

Answer 29

(average annual return/ initial outlay) x100

Question 30

labour turnover:

Answer 30

(number of staff leaving the firm per year/ average number of staff) x100

Question 31

labour productivity:

Answer 31

output per period/ number of employees per period

Question 32

labour retention:

Answer 32

(staff not leaving in the past year/ average number of staff employed in the year) x100

Question 33

absenteeism rate:

Answer 33

(days absent per year/ total number of working days) x100

Question 34

cost per unit:

Answer 34

total fixed costs + total variable costs / total units produced