Equations Flashcards by Adam Bray

Q

Variable costs

A

Variable cost per unit X number of units sold

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Q

Market capitalisation

A

Number of issued shares X current share prices

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Q

Market growth (%)

A

Change in size of market/size of market X 100

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Q

Added value

A

Sales revenue - costs of something in good and services

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Q

Labour productivity

A

Output per time period/maximum positive output in given time

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Q

Capacity Utilisation (%)

A

Actual Output / Maximum Possible Output X 100

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Q

Gross Profit

A

Sales Revenue - costs of sales

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Q

Operating profit

A

Sales revenue - cost of sales - overheads

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Q

Profit for the year

A

Operating profit - other expenses

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Q

Gross profit margin (%)

A

Gross profit / sales revenue X 100

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Q

Contibution per unit

A

Selling price - variable cost per unit

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Q

Total contribution

A

Total revenue - total variable costs

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Q

Break-even output

A

Fix cost / contribution per unit

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Q

Margin of safety

A

Actual level of output - Breakene level of output

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