Equations Flashcards
(17 cards)
What is the equation for Revenue
=Selling price * Number of units sold
What is the equation for Total costs
= fixed costs + variable costs
What is the equation for labour productivity
= output over time period/number of employees
What is the equation for capacity utilisation
= actual output/maximum possible output *100
Gross Profit
Revenue - COS
Gross profit margin
Gross profit / revenue x100
Operating profit margin
Operating profit / revenue x100
Net profit margin
Net profit / revenue x100
Contribution per unit
Selling price - variable cost per unit
Break even output
Fixed costs / contribution per unit
Margin of safety
Actual sales - break even sales
Current ratio
Current assets / current liabilities
Gearing
Non current liabilities / capital employed x100
Return on investment
Return / cost of investment x100
Market share
Business sales / total market sales x100
Employee retention rate
(Employees at end of period - leavers) / employees at start x100
Absenteeism
(Number of staff absences / total number of working days) x100
