Equations Flashcards
Market Share
(sales of a product or business/ total market sales) x 100
PED
% change in QD/ % change in Price
YED
% change in QD/ % change in Income
Net cash flow
total inflows - total ouflows
Sales volume
total number of units sold over a period of time
Sales revenue
number of units sold x unit price
Total variable costs
number of units sold x variable cost per unit
Total costs
fixed costs + variable costs
Contribution per unit
selling price per unit - variable cost per unit
Total contribution
contribution per unit x number of units sold
Break-even
fixed costs/ contribution per unit
Variance
actual costs - budget costs
Gross profit
sales revenue - cost of sales
Operating profit
gross profit - overhead
Net profit
operating profit +/- finance costs
Gross profit margin
(gross profit/ sales revenue) x 100
Operating profit margin
(operating profit/ sales revenue) x 100
Profit for the year (net profit) margin
(profit for the year/ sales revenue) x 100
Current ratio
current assets/ current liabilities
Acid test ratio
(current assets - stock) / current liabilities
Productivity (labour)
output per period (units)/ number of employees in that period
Capacity utilisation
(actual level of output/ maximum possible output) x 100
Present value
cash flow x discount factor
Payback point (between two years)
(amount left to pay/ amount available following year) x 12
