Business - formulas

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Market Share
sales of 1 product/ total market share x 100
1 of 20
Market Growth
Change in size/original size x 100
2 of 20
Sales growth
Change in sales/original sales x 100
3 of 20
profit
total revenue - total costs
4 of 20
Revenue
selling price x quantity sold
5 of 20
Total Costs
fixed costs + variable costs
6 of 20
Break Even
fixed costs/contribution per unit
7 of 20
Margin of safety
Current output - break even output
8 of 20
Total variable costs
Variable cost per unit x number of units sold
9 of 20
Added value
Selling price - cost of goods
10 of 20
Gross profit
Revenue - cost of sales (vc)
11 of 20
Operating profit
Sales - cost of sales - operating expenses

or

gross profit - overhead expenses
12 of 20
operating profit margin
operating profit/sales revenue x 100
13 of 20
gross profit margin
gross profit/sales revenue x 100
14 of 20
unit costs
total costs/number of units of output
15 of 20
labour cost per unit
total labour costs/unit of output
16 of 20
market captitalisation
Number of issued shares/current market price
17 of 20
Average rate of return
Annual profit/initial capital cost x 100

or

annual profit (net cash flow)/average capital cost x 100
18 of 20
Margin of safety
Actual level output - breakeven level of output
19 of 20
Net profit margin
net income/sales x 100
20 of 20

Other cards in this set

Card 2

Front

Market Growth

Back

Change in size/original size x 100

Card 3

Front

Sales growth

Back

Preview of the front of card 3

Card 4

Front

profit

Back

Preview of the front of card 4

Card 5

Front

Revenue

Back

Preview of the front of card 5
View more cards

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