Formulae Flashcards
(31 cards)
Revenue
Selling price X quantity sold
Total variable costs
Variable costs per unit X number of units sold
Total costs
Fixed costs + variable costs
Profit
Total revenue - total costs
or
Total contribution - fixed costs
Added value
Sales revenue - costs of bought in goods and services
Labour productivity
output over a time period / number of employees
Unit costs
Total costs / number of units of output
Capacity utilisation
(Actual output / maximum possible output) X 100
Return on investment
(Profit from the investment / cost of the investment) X 100
Gross profit
Revenue - cost of sales
Operating profit
gross profit - operating expenses
Profit for a 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
Profit for a year margin
(Profit for a year / revenue) X 100
Variance
Budgeted figure - actual figure
Contribution per unit
Selling price - variable costs per unit
Total contribution
Contribution per unit X units sold
or
Total revenue - total variable costs
Breakeven output
Fixed costs / contribution per unit
Margin of safety
Actual level of output - breakeven level of output
Labour turnover
(Number of staff leaving / number of staff employed by the business) X 100
Employee retention rate for a particular time period
(number of employees who remained with the business for the whole period of time / number of employees at the start of the time period) X 100
Labour costs per unit
Labour costs / units of output
Return on capital employed
(Operating profit / Total equity + non current liabilities) X 100
