# Equations for 2022 exam Flashcards

Market share

Sales of a business ÷ Total sales in the market) x 100

Percentage change

(Difference between the two numbers ÷ original number) x 100

Cost plus pricing =

cost per product + (mark-up x unit cost)

E.g. a handbag is £80 plus 25% mark up.

£80 + (25% x £80) = £80 + £20 = £100

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

Gross profit =

Sales revenue minus cost of sales

Operating profit =

Gross profit minus overheads

Net profit =

Operating Profit +/- Tax, finance costs (purchase or sales of assets)

Opening balance =

previous months closing balance

Closing balance =

Opening balance +/- Net cash flow

Net cash flow =

Total inflows – Total outflows

Break-even =

Fixed costs ÷ Contribution per unit

Contribution per unit =

Selling price per unit – Variable cost per unit