A-Level Business Key Calculations and Formulas

  • Created by: Rachelcfx
  • Created on: 25-03-19 19:14
Market Share
(Sales of a product / total market sales) x 100
1 of 22
Price elasticity of demand
% change in quantity demanded / % change in price
2 of 22
Income elasticity of demand
% change in quantity demanded / % change in income
3 of 22
Net cash flow
total inflows - total outflows
4 of 22
Sales volume
total no of units sold over a period of time
5 of 22
Sales revenue
no of units sold x unit price
6 of 22
Total variable costs
no of units sold x variable cost per unit
7 of 22
Total costs
fixed costs + variable costs
8 of 22
Contribution per unit
selling price per unit - variable cost per unit
9 of 22
Total contribution
contribution per unit x no of units sold
10 of 22
Break-even
fixed costs / contribution per unit
11 of 22
Variance
actual - budget
12 of 22
Gross profit
sales revenue - cost of sales
13 of 22
Operating profit
gross profit - overheads
14 of 22
Net profit
operating profit +/- finance costs
15 of 22
Gross profit margin
(gross profit / sales revenue) x 100
16 of 22
Operating profit margin
(operating profit / sales revenue) x 100
17 of 22
Profit for the year (net profit) margin
(profit for the year / sales revenue) x 100
18 of 22
Current ratio
current assets / current liabilities
19 of 22
Acid test ratio
(current assets - stock) / current liabilities
20 of 22
Productivity (labour)
output per period (units) / number of employees in that period
21 of 22
Capacity utilisation
(actual level of output / maximum possible output) x 100
22 of 22

Other cards in this set

Card 2

Front

Price elasticity of demand

Back

% change in quantity demanded / % change in price

Card 3

Front

Income elasticity of demand

Back

Preview of the front of card 3

Card 4

Front

Net cash flow

Back

Preview of the front of card 4

Card 5

Front

Sales volume

Back

Preview of the front of card 5
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