Year 12

Question 1

Profit

Answer 1

Revenue- total costs

Question 2

Market share

Answer 2

(Sales for the one company/ total market sales) X100

Question 3

Market growth

Answer 3

(🔼 size of market / original size ) x100

Question 4

Profit (contribution)

Answer 4

Total contribution - fixed costs

Question 5

Total costs

Answer 5

Fixed costs X no sold

Question 6

Contribution per unit

Answer 6

Selling price per unit - variable costs per unit

Question 7

Breakeven output

Answer 7

Fixted costs/ contributions per uni

Question 8

Margin of safety

Answer 8

Current output - breakeven output

Question 9

Total variable costs

Answer 9

Variable cost per unit X no of units

Question 10

Added value

Answer 10

Selling price - costs to buy

Question 11

Gross profit

Answer 11

Sales revenue - variable costs

Question 12

Operating profit

Answer 12

Sales rev - cost of sales - operating expenses

Question 13

Gross profit margin

Answer 13

(Gross profit/ revenue) X 100

Question 14

Operating profit margin %

Answer 14

(Operating profit / revenue) X100

Question 15

Labour productivity

Answer 15

Total value of output/ number of employees

Question 16

Labour turnover

Answer 16

(No of leavers per year/ average no of employees per year) X100

Question 17

Labour absenteeism

Answer 17

(Average number of staff absent/ total number of staff) X100

Question 18

Capacity utilisation

Answer 18

(Current output/ max output) X100

Question 19

Unit cost

Answer 19

Total cost/ output

Question 20

PED

Answer 20

(% change in demand/ % change in price)x100

Question 21

Labour cost per unit

Answer 21

Labour cost / unit of output

Question 22

Net gain (decision tree)

Answer 22

Expected value- costs

Question 23

Market capitalisation

Answer 23

Number of shares issued X current share price

Question 24

Re order quantity

Answer 24

Lead time in days X average daily use

Question 25

Employee cost as a percentage of turnover

Answer 25

(Employee costs/ sales turnover) X100

Question 26

Employee retention rate

Answer 26

(No of employees at the end of period - number of leavers / no of employees at the end of period) X100

Question 27

Profit of the year

Answer 27

Operating profit + profit from other activities e.g intrest - net finance costs - tax

Question 28

Expected value

Answer 28

(Profit 1 X probability 1) + (profit 2 X probability 2)