Formulas Flashcards
(38 cards)
Total Cost=
Fixed costs + Variable costs
Profit=
Total revenue - Total costs
or
Total contribution - Fixed cots
Total variable costs=
Variable cost per unit X No’ of units sold
Sales revenue or turnover=
Selling price per unit X No’ of units sold
Market capitalisation=
No’ of issued shares X Current share price
In a decision tree, Net Gain=
Expected value - Initial cost of decision
Market size volume (definition)
the quantity of goods and services produced in a particular market over a period of time
Market size value (definition)
the total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time
sales volume (definition)
the quantity of goods and services produced by a particular business over a period of time
sales value (definition)
the total sales revenue of a particular business over a period of time
Market Growth (%)
change in market size / original market size
X 100
Sales growth (%)
change in sales / original sales X 100
Market share (%)
sales of one product OR brand OR business / total sales in the market X 100
PED
% change in quantity demanded / % change in price X 100
price inelastic ranges from..
-1 < inelastic < 0
price elastic ranges from..
-∞ < elastic < -1
added value=
sales revenue- costs of bought-in goods
labour productivity=
output per employee / No’ of employees
unit costs=
TC of production/ No’ of units produced
capacity utilisation (%)
actual output / maximum possible output X 100
ROI (%)
return on investment / cost of investment X 100
Gross profit=
sales revenue - cost of sales
Operating profit=
gross profit - operating expenses
profit for the year=
operating profit + profit from other activities - net finance costs - tax
