Formula Flashcards
(26 cards)
Market share
Sales of business/total sales in market x100
PED
%change in QD/%change in price
YED
%change in QD/%change in income
Break even
Total fixed costs/contribution per unit
Contribution
Selling price-variable cost per unit
Total contribution
Contribution per unit x number units sold
Margin of safety
Total output - breakeven point
Gross profit
Sales revenue - cost of sale
Gross profit margin
Gross profit/sales revenue x100
Operating profit
Gross profit-expenses
Operating profit margin
Operating profit/sales revenue x 100
Working capital
Current assets-current liabilities
Productivity
Output per time period/input per time period
Labour productivity
Output per time period/No. workers or hours worked
Sales volume
Sales revenue/price
Sales revenue
Price x Quantity
Total costs
Fixed + variable costs
Total variable
Total costs - fixed costs
or
average variable x output
Average variable
Variable costs/output
Profit
Total revenue-total costs
Net profit
Operating profit-interest/tax
Net profit margin
Net profit/sales revenue x 100
Current ratio
Current assets/current liabilities
Remember to answer in ratio formula
Acid test ratio
Current assets-stock/current liabilities
