Business Formula's

Total costs
Fixed costs + Variable costs
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Profit
Total revenue -Total costs OR Total contribution - Fixed costs
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Variable costs Total variable costs
Variable cost per unit × Number of units sold
3 of 19
Total revenue Sales revenue or Turnover
Selling price per unit × Number of units sold
4 of 19
Market capitalisation of a business
Number of issued shares × Current share price
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Define market size
Market size volume is the quantity of goods and services produced in a particular market over a period of time usually one year .
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Market growth % in year
(Change/Original) x 100
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Formula for Market Share
(Sales of business sales/ Total sales in market) x 100
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Added value
Sales revenue-costs of bought-in goods and services.
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Break-even output
Fixed costs Contribution per unit
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Margin of safety
Actual level of output - Breakeven level of output
11 of 19
Gross profit margin %
(Gross profit / Sales revenue) × 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 × 100
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Employee retention rate % for a particular time period
Number of employees at end of period-number of leavers / Number of employees at end of period ×100
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Current ratio
Current assets / Current liabilities
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Acid Test Ratio
Current assets - stock / Current liabilities
16 of 19
Average rate of return %
(Net return from project £ or number of years / Initial cost of project) × 100
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Capacity utilisation (%)
Actual output given in a time period/ Maximum possible output in a given time period
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Return on investment (%)
(Return on investment (£) / Cost of the investment (£)) x100
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Other cards in this set

Card 2

Front

Total revenue -Total costs OR Total contribution - Fixed costs

Back

Profit

Card 3

Front

Variable cost per unit × Number of units sold

Back

Preview of the back of card 3

Card 4

Front

Selling price per unit × Number of units sold

Back

Preview of the back of card 4

Card 5

Front

Number of issued shares × Current share price

Back

Preview of the back of card 5
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