Formula

Question 1

Revenue

Answer 1

Selling price x number of units sold

Question 2

Profit

Answer 2

Total revenue - total costs

Question 3

Labour productivity

Answer 3

Output over period of time / number of employees

Question 4

Capacity utilisation

Answer 4

Actual output / max possible output (x100)

Question 5

Gross profit

Answer 5

Revenue - cost of sales

Question 6

Operating profit

Answer 6

Gross profit - expenses

Question 7

Budget variance

Answer 7

Budgeted figure - actual figure

Question 8

Contribution per uni

Answer 8

Selling price - variable cost per unit

Question 9

Total contribution

Answer 9

Contribution per unit x units sold

Or

Total revenue - total variable costs

Question 10

Break even

Answer 10

Fixed costs / selling price - variable costs

Question 11

Margin of safety

Answer 11

Actual output - Break even output

Question 12

Return on capital employed

Answer 12

Operating profit / total equity - non current liabilities (x100)

Question 13

Current ratio

Answer 13

Current assets / current liabilities

Question 14

Gearing ratio

Answer 14

Non current liabilities/ total equity + non current liabilities

Question 15

Payables days

Answer 15

Payables / Costs of sales (x365)

Question 16

Receivables days

Answer 16

Receivables / revenue (x365)

Question 17

Average rate of return

Answer 17

Add up +ve cash flows
Subtract initial investment
Divide by years
Write as a % of initial investment