Complete formula list

Question 1

Market share

Answer 1

Total sales of product/company divided by total market sales x 100

Question 2

Market Growth

Answer 2

Change in size of market / original size of the market x 100

Question 3

Sales Growth

Answer 3

Change in sales / original sales x 100

Question 4

Profit

Answer 4

Sales revenue - total costs

Question 5

Profit (using contribution)

Answer 5

Total contributions - fixed costs

Question 6

Total Revenue

Answer 6

Selling price x number sold

Question 7

Total Costs

Answer 7

Fixed costs + variable costs

Question 8

Contribution per unit

Answer 8

Selling price per unit - variable costs per unit

Question 9

Total Contribution

Answer 9

Contribution x no. of units sold

Question 10

Breakeven

Answer 10

Total Revenue = total costs

Question 11

Breakeven output

Answer 11

Fixed costs / contribution per unit

Question 12

Margin of safety

Answer 12

Current output - breakeven output

Question 13

Total variable costs

Answer 13

variable costs per unit x no. of units

Question 14

added value

Answer 14

selling price - cost of bought in goods/services

Question 15

Gross profit

Answer 15

Sales revenue - variable costs (costs of sales)

Question 16

Operating profit

Answer 16

Sales revenue - variable costs + fixed costs (total costs)

gross profit - fixed costs

Question 17

Gross profit margin

Answer 17

Gross profit - sales revenue x 100

Question 18

Operating profit margin

Answer 18

operating profit - sales revenue x 100

Question 19

Return on capital employed (ROCE)

Answer 19

Return on investment / cost of investment x 100

Question 20

Return on investment

Answer 20

Net Profit / capital invested x 100

Question 21

Labour turnover

Answer 21

Number of employees per year / average number of employees per year x 100

Question 22

labour productivity

Answer 22

Total value of output / total number of employees

Question 23

Labour absenteeism

Answer 23

average number of staff absent on one day / total number of staff x 100

Question 24

Capacity utilisation

Answer 24

Current output / maximum output x 100

Question 25

Unit costs

Answer 25

Total costs / output

Question 26

Labour costs per unit

Answer 26

Labour costs / unit of output

Question 27

Price elasticity of demand

Answer 27

% change in demand / % change in price

Question 28

Market Capitalisation

Answer 28

Number of issued shares x current share price

Question 29

Net Gain (decision tree)

Answer 29

expected value - initial cost of decision

Question 30

Expected value

Answer 30

(pay off of A x probability of A) + (pay off of B x probability of B)

Question 31

Re-order quantity

Answer 31

Lead time x average daily usage

Question 32

Re-order level

Answer 32

Re order quantity + minimum inventory level

Question 33

Profit for the year

Answer 33

Operating profit + profit from other activities - net finance costs - tax

Question 34

Variance

Answer 34

budgeted - actual

Question 35

Employee retention rate

Answer 35

No. of employees at end of period - number of leavers / No. of employees at end of period x 100

Question 36

Employee costs as a % of turnover

Answer 36

employee costs / sales turnover x 100

Question 37

return on capital investment

Answer 37

operating profit / total equity + non-current liabilities x 100

Question 38

Current Ratio

Answer 38

Current assets / current liabilities

Question 39

Gearing

Answer 39

Non current liabilities / total equity + non-current liabilities x 100

Question 40

Payable days

Answer 40

Payables / cost of sales x 365

Question 41

Receivables days

Answer 41

Receivables / sales revenue x 365

Question 42

Inventory turnover

Answer 42

cost of goods sold / average inventories held