# Business revision, equations and calculations.

What is the equation for market share?
Market share = (sales of a product / total market sales) x 100
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What is the equation for PED?
PED = % change in quantity demand / % change in price
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What is the equation for YED (income elasticity of demand)?
YED = %change in quantity demand / %change in income
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What is the calculation for Net cash flow?
Net cash flow = total inflows - total outflows
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What is the calculation for sales volume?
Sales volume = total sales revenue / selling price per unit
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What is the calculation for sales revenue?
Sales rev = number of units sold x unit price
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What is the calculation for total variable costs?
Total variable costs = Number of units sold x variable cost per unit
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What is the calculation for total costs?
Total costs = Fixed costs + variable costs
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What is the calculation for contribution per unit?
Contribution per unit = selling price per unit - variable cost per unit
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What is the calculation for total contribution?
Total contribution = contribution per unit x number of units sold
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What is the calculation for break even?
Break even = Fixed costs / Contribution per unit
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What is the calculation for variance?
Variance = Actual - Budget
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What is the calculation for gross profit?
Gross profit = sales revenue - cost of sales
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What is the calculation for operating profit?
Operating profit = gross profit - other operating expenses
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What is the calculation for net profit?
Net profit = operating profit - interest
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What is the calculation for gross profit margin?
Gross profit margin = (gross profit / sales revenue) x 100
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What is the calculation for operating profit margin?
Operating profit margin = (operating profit / sales revenue) x 100
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What is the calculation for net profit margin?
Net profit margin = (net profit / sales revenue) x 100
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What is the calculation for current ratio?
Current ratio = current assets / current liabilites
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What is the calculation for acid test ratio?
Acid test ratio = (current assets - stock) / current liabilities
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What is the calculation for productivity?
Productivity = Output per period (units) / Number of employees in that period
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What is the calculation for capacity utilisation?
Capacity utilisation = (actual level of output / maximum possible output) x 100
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What is the calculation for annual interest paid?
Annual interest paid = total loan amount x interest rate
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What is the calculation for average variable cost?
Average variable cost = Total variable cost / sales volume
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What is the calculation for revenue at break even?
Revenue at break even = Sales volume (at break even point) x Selling price
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What is the calculation for margin of safety?
Margin of safety = actual sales volume - break even
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What is the calculation for percentage change?
Percentage change = difference / original figure x 100
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What is the calculation for percentage change for top budget?
Percentage change for top budget = variance / budget x 100
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What is the calculation for foreign currency?
Foreign currency = British currency x exchange rate
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What is the calculation for cost plus pricing?
Cost plus pricing = (total budgeted cost + markup) / budgeted sales in units
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What is the calculation for gearing ratio?
Gearing ratio = (Long term liability / capital employed) x 100
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## Other cards in this set

### Card 2

#### Front

What is the equation for PED?

#### Back

PED = % change in quantity demand / % change in price

### Card 3

#### Front

What is the equation for YED (income elasticity of demand)?

#### Back ### Card 4

#### Front

What is the calculation for Net cash flow?

#### Back ### Card 5

#### Front

What is the calculation for sales volume?

#### Back 