Business Formulas + Key data AQA A level Business (7131/7132) ALL KEY DATA AND FORMULAS FROM SPEC :) 0.0 / 5 ? BusinessAll topicsA2/A-levelAQA Created by: abbiegregory6Created on: 04-01-18 09:32 total costs fixed costs+variable costs 1 of 44 profit revenue-costs OR total contribution-fixed costs 2 of 44 total variable costs variable cost per unit x number of units sold 3 of 44 total revune (sales revenue or turnover) selling price x number of units sold 4 of 44 market capitalisation of a business number of shares issued x current share price 5 of 44 expected value of a decision with 2 possible outcomes (pay off of A x probability of A) + (pay off of B x probability of B) N.B probability of A = probability of B=1.0 6 of 44 decision tree, net gain expected value-cost of decision 7 of 44 market size/volume quantity of goods and services produced in a particular market over a period of time, usually a year 8 of 44 market size/value total sales revenue generated from selling all of the goods and services produced in a particular market over a period of time, usually a year 9 of 44 sales volume quantity of goods and services produced by a particular business over a period of time, usually a year 10 of 44 sales value the total sales revenue of a particular business over a period of time, usually a year 11 of 44 market growth % change in size of market / original size of market x100 12 of 44 sales growth % change in sales / original value x 100 13 of 44 market share % specific sales / total sales x 100 14 of 44 price elasticity of demand % change in quantity demanded / % change in price 15 of 44 added value/value added sales revenue-costs of bought in goods and services 16 of 44 labour productivity output per time period / number of employees 17 of 44 unit costs/average costs total costs of production / number of outputs produced 18 of 44 capacity utilisation % actual output in time period / max possible output in time period x 100 19 of 44 return on investment % return on investment / cost of decision x 100 20 of 44 gross profit sales revenue-cost of sales 21 of 44 profit from operation/operating profit sales revenue-cost of sales-operationg costs 22 of 44 yearly profit operating profit+profit from other activity-net finance costs-tax 23 of 44 variances the difference between an actual and budgeted figure. adverse is bad and favourable is good 24 of 44 contribution per unit selling price-variable cost per unit 25 of 44 total contribution contribution per unit x units produced or sold OR total revenue-total variable costs 26 of 44 breakeven output fixed costs / contribution per unit 27 of 44 margin of safety actual output-breakeven output 28 of 44 gross profit margin % gross profit / sales revenue x 100 29 of 44 profit from operations margin/operation profit margin % operating profit / sales revenue x 100 30 of 44 profit for year margin % profit for year / sales revenue x 100 31 of 44 labour turnover % number of staff leaving in year / average number of staff employes there a year x 100 32 of 44 employee retention rate % for time period number of employees at end of time period-number of leavers / number of employees at end of period x 100 33 of 44 employee costs as percentage or turnover % employee costs / sales turnover x 100 34 of 44 labour cost per unit labour costs / units of output 35 of 44 return on capital employed (ROCE) % non current liabilities / total equity + non current liabilities x 100 where total equity+non current liabilities=capital employed 36 of 44 current ratio current assets / current liabilities 37 of 44 gearing % non current liabilities / total equity+ non current liabilities x 100 where total equity+non current liabilities=capital employed 38 of 44 payables days payables / cost of sales x365 where payables=creditors 39 of 44 receivables days receivables / sales revenue x365 where receivables=debtors 40 of 44 inventory turnover cost of goods sold / average inventories held 41 of 44 average rate of return % net return from project £ or number of years / initial cost of project £ x100 42 of 44 break even chart, output the break even output is where total revenue equals total costs 43 of 44 break even chart, profit the level of profit at a given level of output is the vertical distance between the total revenue line and the total cost line 44 of 44
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