A-Level Business Formula Formula taken from exam board required formula 5.0 / 5 based on 1 rating ? BusinessFormulaA2/A-levelAQA Created by: Eliza-Robyn1Created on: 14-12-21 17:37 Total Costs Total Variable Costs + Total Fixed Costs 1 of 47 Profit Total Revenue - Total Costs = Profit 2 of 47 Profit Total Contribution - Fixed Costs 3 of 47 Total Variable Costs Variable Cost per Unit X Number of Units Sold 4 of 47 Total Sales Revenue Selling Price per Unit X Number of Units Sold 5 of 47 Market Capitalization of a Business Number of Issued Shares X Current Share Price 6 of 47 Expected Value of a Decision with two Possible Outcomes (Pay off of A X Probability of A) + (Pay off of B X Probability of B) 7 of 47 Net Gain in Decision Tree Expected Value - Initial Cost of Decision 8 of 47 Market Size Volume Quantity of Goods and Services produced in the Market over a Period of Time 9 of 47 Market Size Value Total Sales Revenue generated from sales in the Market over a Period of Time 10 of 47 Sales Volume Quantity of goods and services produced in the Market over a Period of Time 11 of 47 Sales Value Total Sales Revenue over A Period of Time 12 of 47 Market Growth % (Change in the size of the market between year Y and year Z ÷ Sales of Product or Business in year Y) X 100 13 of 47 Sales Growth % (Change in sales of product or business between year Y and year Z ÷ Sales of Product or Business in year Y) X 100 14 of 47 Market Share % (Sales of one product or brand or business ÷ Total sales in the market) X 100 15 of 47 Price Elasticity of Demand (Percentage change in Quantity Demanded ÷ Percentage change in Price) X 100 16 of 47 Income Elasticity of Demand (Percentage change in Quantity Demanded ÷ Percentage change in Income) X 100 17 of 47 Added Value Sales revenue - costs of bought in goods and services 18 of 47 Labour Productivity Output per Time Period ÷ Number of Employees 19 of 47 Unit Costs Total Costs of Production ÷ Number of Units of Output Produced 20 of 47 Capacity Utilization (Actual Output in a given Time Period ÷ Maximum Output in a given Time Period) X 100 21 of 47 Return on Investment (Return on Investment ÷ Cost of Investment) X 100 22 of 47 Gross Profit Sales Revenue - Cost of Sales 23 of 47 Operating Profit Gross Profit - Operating Expenses 24 of 47 Profit for Year Operating Profit + Profit from other activities - Net Finance Costs - Tax 25 of 47 Favourable Variance Actual Sales or Profit Higher than Budget, or Costs Lower than Budget 26 of 47 Adverse Variance Actual Sales or Profit Lower than Budget, or Costs Higher than Budget 27 of 47 Contribution per Unit Selling Price - Variable Cost per Unit 28 of 47 Total Contribution Contribution per Unit X Units Produced or Sold 29 of 47 Total Contribution Total Revenue - Total Variable Costs 30 of 47 Break-Even Output Fixed Costs ÷ Contribution per Unit 31 of 47 Break Even Level of Output where Total Revenue = Total Costs 32 of 47 Margin of Safety Actual Level of Output - Break-Even Level of Output 33 of 47 Gross Profit Margin (Gross Profit ÷ Sales Revenue) X 100 34 of 47 Operating Profit Margin (Operating Profit ÷ Sales Revenue) X 100 35 of 47 Profit for Year Margin (Profit for Year ÷ Sales Revenue) X 100 36 of 47 Labour Turnover (Number of Staff Leaving During Year ÷ Average Number of Staff Employed) X 100 37 of 47 Employee Retention Rate (Number of Staff Staying During Year ÷ Average Number of Staff Employed) X 100 38 of 47 Employee Costs in Turnover (Employee Costs ÷ Sales Revenue) X 100 39 of 47 Labour Cost per Unit Labour Cost ÷ Units of Output 40 of 47 Return on Capital Employed (Operating Profit ÷ Total Equity + Non-Current Liabilities) X 100 41 of 47 Current Ratio Current Assets ÷ Current Liabilities 42 of 47 Gearing Non-Current Liabilities ÷ Total Equity + Non-Current Liabilities 43 of 47 Payable Days (Payables ÷ Cost of Sales) X 365 44 of 47 Receivable Days (Receivables ÷ Sales Revenue) X 365 45 of 47 Inventory Turnover Cost of Goods Sold ÷ Average Inventories Held 46 of 47 Average Rate of Return (Net Return from Project ÷ Initial Cost of Project) X 100 47 of 47
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