Formulae Flashcards
(37 cards)
Percentage change increase
Increase= new number - old number
%ge increase = increase / old number X100
Percentage change decrease
Decrease = old number - new number
%ge decrease= decrease/ old number X100
PED
%ge change in quantity demanded/
%ge change in price
PED>-1 =
Price elastic demand
PED< -1 =
Price inelastic demand
YED
%ge change in quantity demanded/
%ge change in income
YED figure <1 =
Normal good
YED figure >1 =
Luxury goods
Market share %
Total sales of one firm/
Total sales in market X100
Sales revenue =
Selling price x sales volume
Sales volume=
Sales revenue / selling price
Contribution per unit
Selling price per unit - variable costs per unit
Total contribution
Contribution per unit x number of units sold
Profit/ Loss
Profit= total contribution - fixed costs
Or
Profit= total revenue - total costs
Budget variance
Actual figure - budgeted figure
Break even point
Is where total revenue = total costs
Break even output
Total fixed costs / contribution per unit
Margin of safety
Current sales volume / output - break even output
Gross profit
Revenue - total variable costs (cost of sales)
Net profit for year
Operating profit +/- finance costs or income
Gross profit margin
Gross profit/ revenue x100
Operating profit margin
Operating profit / revenue x100
Net profit margin
Net profit/ revenue x100
Current ratio
Current assets / current liabilities
