Key Calulations Flashcards
(42 cards)
Total costs
Total costs=variable costs+fixed costs
Profit
Total revenue-total costs
Or
Total contribution-fixed costs
Market capitalisation
Current shareprice X number of outstanding shares
Expected value
Expected value=probability X outcome
Net gain
Net gain= expected value-cost of decision
Market growth
Market growth=(change in market sales over a period of time/original market sales)
Sales growth
Sales growth=(change in sales over a period of time/origional sales) X 100
Market share
Market share=( sales of a product or business/ total market sales) X 100
Price elasticity of demand
Price elasticity of demand=%change in quality demanded/%change in price
Income elasticity of demand
Income elasticity of demand =%change in quality demanded/%change in income
Labour productivity
Labour productivity=output per period/number of employees
Unit costs
Unit costs=total production costs/number of units produced
Capacity utilisation
Capacity utilisation=(actual level of output/maximum possible output) X 100
Revenue
Revenue=number of units sold X the price
Variance
Variance=actual-budget
Contribution per unit
selling price per unit - variable costs per unit
Total contribution
Total contribution = contribution per unit X number of units sold
Or total rev - total VC
Break even
fixed costs/contribution per unit
Gross profit margin
Gross profit margin=(gross profit/sales revenue) x100
Operating profit margin
Operating profit margin=(operating profit/sales revenue) X 100
Profit for the year margin
Profit for the year margin=(profit for the year/sales revenue) X 100
Net cash flow
Net cash flow=total inflows-total outflows
Labour turnover
Labour turnover= (number of employees leaving during a period of time/number of employees employed) X 100
Retention rates
Retention rates=(number of employees during period-number of leavers per period) / (number of employees during a period of time) X100
