# AQA A Level Business Calculations & Formulae

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• Created by: nwhinn
• Created on: 07-05-19 15:06
TOTAL COSTS
Fixed Costs + Variable Costs
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PROFIT
Total Revenue - Total Costs
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TOTAL VARIABLE COSTS
Variable Cost per Unit x Number of Units Sold
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SALES REVENUE / TURNOVER
Selling Price per Unit x Number of Units Sold
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MARKET CAPITALISATION
Number of Shares Issued x Current Share Price
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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)
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DECISION TREE NET GAIN
Expected Value - Initial Cost of Decision
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MARKET GROWTH (%) IN YEAR 'X'
(Change in Size of the Market between Year (X-1) and Year X / Size of the Market in Year (X-1)) x 100
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SALES GROWTH (%) IN YEAR 'X'
(Change in Sales of a Product or Business Between Year (X-1) and Year X / Sales of Product or Business in Year (X-1)) x 100
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MARKET SHARE (%)
(Sales of One Product or Brand or Business / Total Sales in the Market) x 100
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PRICE ELASTICITY OF DEMAND
(Percentage Change in Quantity Demanded / Percentage Change in Price) x 100
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LABOUR PRODUCTIVITY
Output per Time Period / Number of Employees
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UNIT COSTS (AVERAGE COSTS)
Total Costs of Production / Number of Units of Output Produced
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CAPACITY UTILISATION (%)
(Actual Output in a Given Time Period / Maximum Possible Output in a Given Time Period) x 100
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RETURN ON INVESTMENT (%)
(Return on Investment (£) / Cost of the Investment (£)) x 100
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GROSS PROFIT
Sales Revenue - Cost of Sales
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OPERATING PROFIT
Sales Revenue - Cost of Sales - Operating Expenses
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PROFIT FOR THE YEAR
Operating Profit + Profit from Other Activities - Net Finance Costs - Tax
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CONTRIBUTION PER UNIT
Selling Price - Variable Costs per Unit
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TOTAL CONTRIBUTION (1)
Contribution per Unit x Units Produced or Sold
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TOTAL CONTRIBUTION (2)
Total Revenue - Total Variable Costs
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BREAK-EVEN OUTPUT
Fixed Costs (£) / Contribution per Unit (£)
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MARGIN OF SAFETY
Actual Level of Output - Break-Even Level of Output
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GROSS PROFIT MARGIN (%)
(Gross Profit / Sales Revenue) x 100
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OPERATING PROFIT MARGIN (%)
(Operating Profit / Sales Revenue) x 100
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PROFIT FOR THE YEAR MARGIN (%)
(Profit for the Year / Sales Revenue) x 100
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LABOUR TURNOVER (%)
(Number of Staff Leaving During the Year / Average Number of Staff Employed by the Business During the Year) x 100
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EMPLOYEE RETENTION RATE (%)
(Number of Staff who Stay Throughout the Year / Average Number of Staff Employed by the Business During the Year) x 100
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EMPLOYEE COSTS AS % OF TURNOVER
(Employee Costs / Sales Revenue) x 100
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LABOUR COST PER UNIT
Labour Costs / Units of Output
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RETURN ON CAPITAL EMPLOYED (%)
(Operating Profit / Total Equity + Non-Current Liabilities) x 100
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CURRENT RATIO
Current Assets / Current Liabilities
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GEARING (%)
Non Current Liabilities / Total Equity + Non-Current Liabilities
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PAYABLES (CREDITORS)
(Payables / Costs of Sales) x 365
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RECEIVABLES (DEBTORS)
(Receivables / Sales Revenue) x 365
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INVENTORY TURNOVER
Costs of Goods Sold / Average Inventories Held
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AVERAGE RATE OF RETURN (%)
((Net Return from Project / Number of Years) / Initial Cost of Project) x 100
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## Other cards in this set

### Card 2

PROFIT

#### Back

Total Revenue - Total Costs

### Card 3

#### Front

TOTAL VARIABLE COSTS

### Card 4

#### Front

SALES REVENUE / TURNOVER

### Card 5

#### Front

MARKET CAPITALISATION