Formulas Flashcards
(34 cards)
revenue
selling price x number of units sold
variable costs
variable cost per unit x number of units sold
total costs
variable + fixed costs
profit
total revenue - total costs
market capitalisation
number of issued shares x current share price
expected value
payoff x probability
net gain
ev - associated cost
market growth
change in the size of a market over time/original size of the market
x 100
market share
sales of one product/brand/business/total sales in the market
x 100
added value
sales revenue - cost of bought in goods and services
labour productivity
output over time period/number of employees
unit costs
total costs/number of units
capacity utilisation
actual output/maximum output
x 100
return on investment
profit from investment/cost of investment
x 100
gross profit
revenue - direct costs
operating profit
gross profit - indirect costs
profit for the year
operating profit - other expenses (tax)
profit margins
gross-operating-pfy / revenue
x 100
variance
budgeted figure - actual figure
contribution per unit
selling price - variable cost per unit
total contribution
total revenue - total vc
break-even output
fixed costs/contribution per unit
margin of safety
actual output - break-even level of output
labour turnover
number of staff leaving/number employed by the business
x 100
