Business revision, equations and calculations. 0.0 / 5 Business StudiesBusiness case studiesASAll boards Created by: rossbrooks1Created on: 04-06-17 17:54 What is the equation for market share? Market share = (sales of a product / total market sales) x 100 1 of 31 What is the equation for PED? PED = % change in quantity demand / % change in price 2 of 31 What is the equation for YED (income elasticity of demand)? YED = %change in quantity demand / %change in income 3 of 31 What is the calculation for Net cash flow? Net cash flow = total inflows - total outflows 4 of 31 What is the calculation for sales volume? Sales volume = total sales revenue / selling price per unit 5 of 31 What is the calculation for sales revenue? Sales rev = number of units sold x unit price 6 of 31 What is the calculation for total variable costs? Total variable costs = Number of units sold x variable cost per unit 7 of 31 What is the calculation for total costs? Total costs = Fixed costs + variable costs 8 of 31 What is the calculation for contribution per unit? Contribution per unit = selling price per unit - variable cost per unit 9 of 31 What is the calculation for total contribution? Total contribution = contribution per unit x number of units sold 10 of 31 What is the calculation for break even? Break even = Fixed costs / Contribution per unit 11 of 31 What is the calculation for variance? Variance = Actual - Budget 12 of 31 What is the calculation for gross profit? Gross profit = sales revenue - cost of sales 13 of 31 What is the calculation for operating profit? Operating profit = gross profit - other operating expenses 14 of 31 What is the calculation for net profit? Net profit = operating profit - interest 15 of 31 What is the calculation for gross profit margin? Gross profit margin = (gross profit / sales revenue) x 100 16 of 31 What is the calculation for operating profit margin? Operating profit margin = (operating profit / sales revenue) x 100 17 of 31 What is the calculation for net profit margin? Net profit margin = (net profit / sales revenue) x 100 18 of 31 What is the calculation for current ratio? Current ratio = current assets / current liabilites 19 of 31 What is the calculation for acid test ratio? Acid test ratio = (current assets - stock) / current liabilities 20 of 31 What is the calculation for productivity? Productivity = Output per period (units) / Number of employees in that period 21 of 31 What is the calculation for capacity utilisation? Capacity utilisation = (actual level of output / maximum possible output) x 100 22 of 31 What is the calculation for annual interest paid? Annual interest paid = total loan amount x interest rate 23 of 31 What is the calculation for average variable cost? Average variable cost = Total variable cost / sales volume 24 of 31 What is the calculation for revenue at break even? Revenue at break even = Sales volume (at break even point) x Selling price 25 of 31 What is the calculation for margin of safety? Margin of safety = actual sales volume - break even 26 of 31 What is the calculation for percentage change? Percentage change = difference / original figure x 100 27 of 31 What is the calculation for percentage change for top budget? Percentage change for top budget = variance / budget x 100 28 of 31 What is the calculation for foreign currency? Foreign currency = British currency x exchange rate 29 of 31 What is the calculation for cost plus pricing? Cost plus pricing = (total budgeted cost + markup) / budgeted sales in units 30 of 31 What is the calculation for gearing ratio? Gearing ratio = (Long term liability / capital employed) x 100 31 of 31

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