formulas Flashcards Preview

business studies > formulas > Flashcards

Flashcards in formulas Deck (40):
1

revenue

price X quantity

2

total costs

fixed costs + total variable costs

3

unit cost per unit

total cost / output

4

variable cost per unit

total variable cost / quantity

5

profit

revenue - total costs

6

gross profit

revenue - variable costs

7

net profit

revenue - total costs

OR

gross profit - other expenses

8

profit for the year

all income - all expenditures

9

gross profit margin

gross profit / revenue X 100

10

net profit/operating margin

net profit / revenue X 100

11

profit for the year margin

profit for the year / revenue X 100

12

return on investment

net profit / capital invested X 100

13

gearing

long term loans / capital employed X 100

14

market capitalisation

share price X number of issued shares

15

contribution per unit

selling price per unit - unit variable costs

16

total contribution

contribution per unit X number of items sold

17

profit made from total contribution

total contribution - fixed costs

18

breakeven level of output

fixed costs / contribution per unit

19

margin of safety

actual level of output - breakeven point

20

capacity utilisation

current output / maximum output X 100

21

labour productivity

total output / the number of workers

22

labour cost per unit

total labour costs / output

23

labour cost as a percentage of revenue

labour cost / revenue X 100

24

labour turnover

number of staff leaving per year / average number of staff employed in a year X 100

25

labour retention

number of staff employed for a year or more / average number of staff employed in a year X 100

26

market share by volume

the total number of units sold in a market

27

market size by value

the number of units X sold by price

28

market share

sales of firm A / total market size X 100

29

market growth

change in market size / old market size X 100

30

percentage change in demand

percentage change in price X PED

31

percentage change in demand

percentage change in income X YED

32

percentage change

new - original = difference

difference / original X 100

33

labour productivity

output per year
----------------
no of employees per period

= units of output per worker

34

labour turnover

no of staff leaving per year
----------------------
average no of staff X 100

= % of workers who left per year

35

retention rates

no of employees employed for a year or more
-----------------------
average no of staff X 100

= employee retention

36

employee costs as a % of turnover

employee/labour costs
-------------------------
sales turnover/revenue

X 100

37

labour cost per unit

total labour costs
------------------
total units of output

X 100

38

labour productivity

output per year
----------------
number of employees


= units of output per worker

39

unit costs

total costs
-----------
units of output

40

capacity utilisation

actual output per year
-----------------------
maximum possible output per year

X 100