formulas Flashcards
(35 cards)
profit
total revenue - total costs
labour turnover
amount of employees leaving / amount employed x 100
total costs
fixed costs + variable costs
total revenue
price x quantity
capacity utilisation
actual/maximum x 100
market growth
change in size of market / size of market x 100
sales growth
change of sales of a product / sales of product x 100
market share
sales of one product / total sales in the market x 100
market capitalisation
number of shares x share price
total variable costs
variable cost per unit x output
price elasticity of demand
change in quantity/change in price x 100
added value
sales revenue - costs of goods and services
labour productivity
output / number of employees
unit costs
total costs / output
contribution per unit
selling price - variable costs per unit
total contribution
total revenue - total variable costs
labour costs per unit
labour costs / output
breakeven output
fixed costs / contribution per unit
margin of safety
actual output - breakeven output
gross profit margin
gross profit / sales revenue x 100
profit for a year margin
profit for a year / sales revenue x 100
physiological pricing
when a company sell for £9.99 instead of £10
loss leadership (supermarkets)
a firm will set all their products cheaper in order to buy more (supermarkets often do this)
price skimming
a high price is set to achieve a high profit margin
