formulas unit 2 Flashcards
(19 cards)
total revenue
price x quantity
total costs
fixed costs + variable cots
profit
total revenue - total costs
gross profit
revenue - cost of sales
gross profit margin
(gross profit/revenue) x 100
operating profits
gross profit - operating expenses
operating profit margin
(operating profit/revenue) x 100
net profit
operating profit - interest and tax
net profit margin
(net profit/revenue) x 100
contribution
selling price - variable cost per unit
total contribution
contribution per unit x number of units sold
break-even output
fixed costs / contribution per unit
margin of safety
actual sales - break-even sales
labour productivity
output/number of employees
capital productivity
output / capital employed
unit costs
total costs/ units produced
capacity utilisation %
(actual output/maximum possible output) x 100
labour turnover %
(employees leaving/ average number of employees) x 100
retention rate %
(employees staying/employees at the start) x 100
