AQA BUSS1 key formulas/calculations

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  • Created by: Gemma
  • Created on: 13-05-14 18:32
Added Value
The difference in value between the price of the finished product and the cost of materials used. selling price - cost of raw materials = added value
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Market Share
The proportion of a total market accounted for by one product or company. total revenue / total market sales x 100
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Market Size
The measurement of the size of total sales for a whole market. By value = units sold in market x average selling price. By volume = firms revenues / market share x 100
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Market Growth
The measurement of the change in market size, usually expressed as a percentage of its original size. how much market size has changed / old market size x 100
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Gross Profit
Total revenue - Total variable costs
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Net Profit
Total revenue - Total costs
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Revenue
The value of sales made during a trading period. Selling price x number of items sold
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Total Costs
Fixed costs + Variable costs
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Contribution Per Unit
Selling price - Variable costs per unit
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Total Contribution
Total revenue - Total variable costs
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Break-even Output
Level of output or number of customers that earns enough revenue to cover total costs of production. Fixed costs / contribution per unit
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Margin of Safety
The amount by which the existing level of output is greater than the break-even output. Output - break-even output
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Cash Flow
Total inflows - Total outflows
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Other cards in this set

Card 2

Front

Market Share

Back

The proportion of a total market accounted for by one product or company. total revenue / total market sales x 100

Card 3

Front

Market Size

Back

Preview of the front of card 3

Card 4

Front

Market Growth

Back

Preview of the front of card 4

Card 5

Front

Gross Profit

Back

Preview of the front of card 5
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