AS BUSINESS UNIT 1 AND 2 CALCULATIONS

MARKET SHARE= SALES OF A BUSINESS / TOTAL SALES IN THE MARKET X 100

TOTAL REVENUE= PRICE X QUANTITY SOLD 

PED= % CHANGE IN QUANTITY DEMANDED / % CHANGE IN PRICE

• LESS THAN 1= PRICE INELEASTIC 
• GREATER THAN 1=PRICE ELASTIC 

IED= %CHANGE IN QUANTITY DEMANDED / % CHANGE IN INCOME 

• GREATER THAN 1=INCOME ELASTIC 
• LESS THAN 1=INCOME INELASTIC 

PERCENTAGE CHANGES IS THE DIFFERENT BETWEEN THE TWO NUMBERS / ORIGNIAL NUMBER X 100

CONTRIBUTION PER UNIT= SELLING PRICE- VARIABLE COSTS 

TOTAL CONTRIBUTION=TOTAL REVENUE- TOTAL VARIABLE COSTS 

TOTAL CONTRIBUTION= UNIT CONTRIBUTION X NUMBER OF USING SOLD

PROFIT=TOTAL CONTRIBUTION - FIXED COSTS 

BREAK EVEN OUTPUT= FIXED COSTS/CONTRIBUTION

PROFIT= REVENUE- TOTAL COSTS

GROSS PROFIT=REVENUE-COST OF SALES

OPERATING PROFIT=GROSS PROFIT - OPERATING EXPENSES 

GROSS PROFIT MARGIN= GROSS PROFIT/REVENUE X 100

OPERATING PROFIT MARGIN= OPERATING PROFIT/ REVENUE X 100

NET PROFIT MARGIN= NET PROFIT BEFORE TAX/SALES REVENUE

CURRENT RATIOS=CURRENT ASSETS/ CURRENT LIABILITIES

ACID TEST RATIO= CURRENT ASSETS-INVENTORIES/CURRENT LIABILITIES 

WORKING CAPITAL=CURRENT ASSETS-CURRENT LIABILITIES 

CAPACITY UTILISATION=CURRENT OUTPUT/MAX OUTPUT X 100