Formulas Flashcards
(33 cards)
How do you calculate total costs?
Total costs= fixed costs + variable costs
How do you calculate profit?
Profit= total revenue - total costs
How do you calculate total variable costs?
Total variable costs= variable costs per unit x number of units sold
How do you calculate total revenue?
Total revenue= selling price x number of units sold
How do you calculate market capitalisation?
Market capitalisation= number of shares issued x current share price
How do you calculate net gain?
Net gain= Expected value - cost of decision
How do you calculate market growth?
Market growth= change in the size of the market ÷ size of market
How do you calculate sales growth?
Sales growth=change in the sales ÷ sales of product
How do you calculate market share?
Market share= sales of a product ÷ total sales in the market
How do you calculate price elasticity?
Price elasticity= change in demand (%) ÷ change in price (%)
How do you calculate added value?
Added value= sales revenue - costs of goods and services
How do you calculate labour productivity?
Labour productivity= output per time period ÷ number of employees
How do you calculate unit cost?
Unit cost= total costs of production ÷ number of units produced
How do you calculate capacity utilisation?
Capacity utilisation= actual output ÷ maximum possible output
How do you calculate return on investment (%)?
Return on investment (%)= return on investment ÷ cost of investment
How do you calculate gross profit?
Gross profit = Sales revenue - cost of sales
How do you calculate operating profit?
Operating profit= sales revenue - cost of sales - operating expenses
How do you calculate profit for the year?
Profit for the year= operating profit + other profits - net finance costs - taxes
How do you calculate contribution per unit?
Contribution per unit= selling price - variable costs per unit
How do you calculate break even output?
Break even output= fixed costs ÷ contribution per unit
How do you calculate margin of safety?
Margin of safety= level of output - break even level of output
How do you calculate gross profit margin?
Gross profit margin= gross profit ÷ sales revenue
How do you calculate profit from operations margin?
Profit from operations margin= operating profit ÷ sales revenue x 100
How do you calculate labour turnover?
Labour turnover= number of staff leaving ÷ average number of staff x 100
