Formulas From Notes Flashcards
(18 cards)
What is the formula for Labour Turnover (%)?
(Number of staff leaving / Average number of staff employed) × 100
How is Labour Productivity calculated?
Total output / Number of employees
How do you calculate Employee Costs as % of Turnover?
(Employee costs / Sales turnover) × 100
What is the formula for Market Share (%)?
(Firm’s sales / Total market sales) × 100
How is Sales Growth (%) calculated?
[(Sales this year – Sales last year) / Sales last year] × 100
What is the formula for Market Growth (%)?
[(Market size this year – Market size last year) / Market size last year] × 100
What is the formula for Capacity Utilisation (%)?
(Current output / Maximum possible output) × 100
How is Productivity defined?
Output / Input (e.g. output per worker, per machine, etc.)
How do you calculate Unit Cost (Average Cost)?
Total cost / Number of units produced
What is the formula for Profit?
Total Revenue – Total Costs
How is Gross Profit calculated?
Revenue – Cost of Sales
What is the formula for Net Profit?
Gross Profit – Overheads
What is Contribution per Unit?
Selling Price – Variable Cost per Unit
How do you calculate Total Contribution?
Contribution per Unit × Number of Units Sold
What is the formula for Break-even Output (Units)?
Fixed Costs / Contribution per Unit
How is Margin of Safety (Units) calculated?
Current Output – Break-even Output
What is Total Revenue?
Selling Price × Quantity Sold
How do you calculate Total Cost?
Fixed Cost + Variable Cost
