Fomulas Flashcards
Revenue
Selling price per unit X number of units sold
Total variable costs
Variable cost per unit X number of units sold
Total costs
Fixed costs + variable costs
2 formula for profit
Total revenue - total costs
Total contribution - fixed costs
Market capitalisation
Number of issued shares X current share price
Expected value
(Pay off A X probability A) X (Pay off B X probability B)
Net gain
Expected value - initial cost of decision
Market growth
(New size - old size) / old size of the market * 100
Market share
Sales of one product / total sales in the market
Added value
Sales revenue - cost of bought in goods and services
Labour productivity
Output per period / number of employees
Unit costs
Total costs / number of units
Capacity utilisation
Actual output / max possible output X 100
Return on investment
Profit from investment / Cost of investment * 100
Gross profit
Revenue - cost of sales
Operating profit
Gross profit - operating expenses
Net profit
(Profit for year)
Operating profit + profit from other activities - Net finance costs - Tax
Gross profit margin
Gross profit / revenue X 100
Operating profit margin
Operating profit / revenue X 100
Net profit margin
Net profit / revenue X 100
Variance
Budgeted figure - actual figure
Contribution per unit
Selling price - variable cost per unit
2 formulas for total contribution
Contribution per unit X units sold
Total revenue - total variable costs
Break-even output
Fixed costs / contribution per unit
