Business- Key Calculations and Formulas

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How do you work out market share?
(Sales/ Total market sales) x100
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How do you work out 'price elasticity of demand'?
% change in quantity demanded/ % change in price
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How do you work out 'income elasticity of demand'?
% change in quantity demanded/ % change in income
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How do you work out net cash flow?
Total inflows- total outflows
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How do you work out sales volume?
Total number of units sold over a period of time (i.e. add them up)
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How do you work out sales revenue?
Number of units sold x unit price
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How do you work out total variable costs?
Number of units sold x variable cost per unit
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If I were to add together the fixed costs and the variable costs, what would I be working out?
Total Costs
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To work out contribution per unit, what do you do?
Selling price per unit- variable cost per unit
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If I were to multiply the contribution per unit by the number of units sold, what would I have worked out?
Total contribution
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To work out variance, you take the budget away from what?
The actual
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How do you work out gross profit?
Sales revenue - cost of sales
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How do you work out operating profit?
Gross profit - overheads
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How do you work out net profit?
Operating profit +/- finance costs
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How do you work out gross profit margin?
(Gross profit/ Sales revenue) x100
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How do you work out operating profit margin?
(Operating profit/ Sales revenue) x100
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How do you work out profit for the year margin?
(Profit for the year/ Sales revenue) x100
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Other cards in this set

Card 2

Front

How do you work out 'price elasticity of demand'?

Back

% change in quantity demanded/ % change in price

Card 3

Front

How do you work out 'income elasticity of demand'?

Back

Preview of the front of card 3

Card 4

Front

How do you work out net cash flow?

Back

Preview of the front of card 4

Card 5

Front

How do you work out sales volume?

Back

Preview of the front of card 5
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