# AQA A-level Business Studies Equations

• Created by: Gaynor
• Created on: 01-05-19 10:04
Revenue
Selling price per unit × Number of units sold
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Variable Costs
Variable cost per unit × Number of units sold
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Total Costs
Fixed Costs + Variable Costs
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Profit
Total revenue −Total costs (OR) Total contribution −Fixed costs
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Number of issued shares × Current share price
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Expected value of a decision with two possible outcome
(Pay-off of A × probability of A)+ (Pay-off of B × probability of B)
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Net gain
Expected value - Initial cost of decision
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Market growth (%)
Change in the size of the market over a period / Original size of the market × 100
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Market share (%)
Sales of one product OR brand OR business / Total sales in the market × 100
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Sales revenue − costs of bought in goods and services
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Labour productivity
Output over a time period / Number of employees
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Unit Costs
Total costs / Number of units of output
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Capacity utilisation (%)
Actual output / Maximum possible output × 100
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Return on Investment (%)
Profit from the investment (£) / Cost of the investment (£) × 100
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Gross profit
Revenue − Cost of Sales
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Operating profit
Gross profit − Operating Expenses
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Profit for Year
Operating profit + Profit from other activities − Net finance costs −Tax
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Gross profit margin (%)
Gross profit / Revenue × 100
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Operating profit margin (%)
Operating profit / Revenue × 100
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Profit for Year margin (%)
Profit for year / Revenue × 100
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Variance
Budgeted figure – actual figure
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Contribution per unit
Selling price − Variable costs per unit
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Total contribution
Contribution per unit x Unit sold (OR) Total revenue − Total variable costs
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Break-even output
Fixed costs / Contribution per unit
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Margin of saftey
Actual level of output − Break-even level of output
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Labour Turnover (%)
Number of staff leaving / Number of staff employed by the business × 100
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Employee retention rate (%) for a particular time period
Number of employees who remained with the business for the whole period of time / Number of employees at start of the time period ×100
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Employee costs as percentage of turnover
Employee costs / Turnover × 100
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Labour costs per unit
Labour costs / Units of output
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Return on capital employed (ROCE)(%)
Operating profit / Total equity + non-current liabilities × 100 Where total equity + non-current liabilities = capital employed
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Current ratio
Current assets / Current liabilities
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Gearing (%)
Non-current liabilities Total equity + non-current liabilities ×100 Where total equity + non-current liabilities = capital employed
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Payable days
Payables / Cost of sales × 365
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Receivable days
Receivables / Revenue × 365
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Inventory turnover
Cost of sales / Average inventories held
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Average rate of return (%)
Average annual return (£) / Initial cost of project (£) × 100
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## Other cards in this set

### Card 2

Variable Costs

#### Back

Variable cost per unit × Number of units sold

Total Costs

Profit