theme 1 and 2 formulas Flashcards
(31 cards)
what is the market share formula (1.1.1)
(sales of business/total sales in the business)x100
percentage change (1.2.4)
(difference /original) x100
PED (price elasticity of demand) (1.2.4)
% change in quantity demanded/ % change in price
YED (income elasticity of demand) (1.2.4)
% change in quantity demanded / percentage change in incomes
Mark-Up (1.3.3)
unit costs x % Mark-up
Net cash flow (2.1.4)
total inflow - total outflow
Closing balance (2.1.4)
net cashflow/ opening balance
Sales Revenue (2.2.2)
price x quantity sold
average costs or unit costs (2.2.2)
total cost/ output
Profit and Loss (2.2.2)
total revenue - total costs
Break-even point (2.2.3)
fixed costs/ contribution per unit (ans will be in units)
Contribution (2.2.3)
selling price - variable costs per unit
Total variable costs (2.2.3)
variable costs per unit x quantity sold
total costs (2.2.3)
fixed costs + variable costs
Margin of safety (2.2.3)
current level of output - break-even output
Budget variance (2.2.4)
actual - budget (ans would be favourable or adverse)
Gross Profit (2.3.1)
revenue - cost of sales
operating profit (2.3.1)
gross profit - other operating expenses
Profit of the year (net profit) (2.3.1)
Operating profit +/- Incomes or expenses not associated with the direct
activity of the business e.g. tax, exceptional expenses or incomes and
interest
Gross Profit Margin
(Gross Profit ÷ Revenue) x 100
operating profit margin
(Operating Profit ÷ Revenue) x 100
net profit (profit of the year) margin
(Profit for the year ÷ Revenue) x 100
net current assets
Current Assets – Current Liabilities
net assets
Total Assets – Total Liabilities
