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Flashcards in Formulae Deck (25):
1

Total costs formula

Total costs = variable costs + fixed costs

2

Total revenue formula

Total revenue = average selling price x quantity sold

3

Ordinary share capital formula

Ordinary share capital = number of shares sold x price they were sold for

4

Market capitalisation formula

Market capitalisation = current share price x number of shares

5

PED formula

PED = % change in quantity demanded ÷ % change in price

6

YED formula

YED = % change in demand ÷ % change in income

7

Unit cost formula

Unit cost = total cost ÷ units of output

8

Capacity utilisation formula

Capacity utilisation = (actual level of output ÷ maximum possible output) x 100

9

Labour productivity formula

Labour productivity = output per period ÷ number of employees at work

10

Debt to equity ratio formula

Debt to equity ratio = (Debts ÷ long term funding) x 100

11

Return on investment formula

ROI = ((financial gains from investment - total cost of investment) ÷ initial cost of investment) x 100

12

Profit formulae

Profit = revenue - costs
Profit = total contribution - fixed costs

13

Contribution per unit formula

Contribution per unit = selling price - variable costs per unit

14

Total contribution formulae

Total contribution = contribution per unit x units sold
Total contribution = sales revenue - total variable costs

15

Break-even point formula

Break-even point = fixed costs ÷ contribution per unit

16

Target profit output formula

Target profit output = (fixed costs + target profit) ÷ contribution per unit

17

Length of cycle formula

Length of cycle = length of time goods are held in stock + time taken for receivables to be paid - period of credit received from suppliers

18

Gross profit margin formula

Gross profit margin = (gross profit ÷ revenue) x 100

19

Gross profit formula

Gross profit = revenue - cost of sales

20

Net profit formula

Net profit = gross profit - expenses

21

Operating profit margin formula

Operating profit margin = (operating profit ÷ revenue) x 100

22

Profit for year margin formula

Profit for year margin = (profit for ÷ revenue) x 100

23

Labour turnover formula

Labour turnover = (number of employees leaving during period ÷ average number employed during period) x 100

24

Retention rate formula

(Number of employees with X years service ÷ overall workforce numbers) x 100

25

Employee costs as a % turnover formula

Employee costs as a % turnover = (employee costs ÷ revenue) x 100

Decks in Business Studies AS Class (72):