Business Unit 1 calculations


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  • Created by: saskia
  • Created on: 24-04-12 21:26

Business unit 1 calculations

1. what is the formular for contribution? 

Revenue-variable costs OR contribution per unit x no. of units sold

2. what is the formular for profit?

total revenue-total costs

 3. formular for total costs? 

Fixed costs+variable costs

4. formular for revenue?

quantity sold x average selling price

5. Market growth rate?

change in size/original market size x 100

1 of 3

calculations cont.

6. market share=

the products sales/total market sales x 100

7. break even output=

fixed costs/contribution per unit 

8.margin of saftey=

The amount by which a firms current level of output exceeds the level of output necessary to break even.

9.contribution per unit=

selling price per unit-variable costs per unit

10. anual profit=

total contribution-fixed costs

2 of 3

calculations cont.

11. net cash flow=

cash inflows-cash outflows

12. closing balance=

opening cash balance+net cash flow

13. variance=

budgeted figure- actual figure

3 of 3


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