Equations Flashcards
Theme 1 and 2 (22 cards)
Market Share
(sales of a product or business / Total market share) x 100
PED
% change in quantity demanded / % change in price
YED
% change in quantity demanded / % change in income
Net flow cash
Total inflows - Total outflows
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 - Budget
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit - overheads
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 Assests / Current liabilities
Acid test radio
(Current assests - stock)/ Current liabilites
Productivity (labour)
Output per period (units) / Number of employees in that period
Capacity Utilisation
(Actual level of output / Maximum possible output) x 100
