Formulas Flashcards
(22 cards)
Market share
(Total sales of business/ total sales of the market)X100
Price Elastcity of demand (PED)
% change QD/ % change in price
Income Elasticity of demand
% change QD/ % Change in y
Unit cost
Total costs/ number of units
Net cash flow
Total cash inflow - total cash outflow
Opening balance
Closing balance ( previous period)
Sales revenue
Price X quantity sold
Total costs
Fixed costs + variable cost
Break even
Fixed costs/ contribution per unit
Contribution per unit
Selling price per unit - variable cost per unit
Total contribution
Contribution per unit X quantity sold
Margin of safety
((Sales - breakeven point)/ sales) X100
Profit
Total revenue - total costs
Variance
Actual figure - budgeted figure
Gross profit
Sales revenue - cost of sales
Operating profit
Gross profit - operating expenses
Net profit
Operating profit - ( finance cost +tax)
Profit margins
(Gross + opening profit + net profit/ sales revenue) X 100
Current ratio
Current assets/ current liabilities
Acid test ratio
(Current liabilities - inventory)/ current liabilities
Productivity
Output/ input per time period
Capacity utilisation
(Current and actual output/ maximum possible output) X100
