# Business studies formulae

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Market share formula
Market share = (Sales of a product or business/ Total market sales) x 100
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Price elasticity of demand
Price elasticity of demand = (% Change in quantity demanded / % Change in price
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Income elasticity of demand formula
Income elasticity of demand = % Change in quantity demanded/ % Change in income
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Net cash flow formula
Net cash flow = Total inflows – Total outflows
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Sales volume formula
Sales volume = total number of units sold over a period of time
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Sales revenue formula
Sales revenue = number of units sold x unit price
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Total variable costs formula
Total variable costs = number of units sold x variable cost per unit
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Total costs formula
Total costs = Fixed costs + variable costs
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Contribution per unit formula
Contribution per unit = Selling price per unit – Variable cost per unit
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Total contribution formula
Total contribution = Contribution per unit x Number of units sold
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Break even formula
Break-even = Fixed costs/ Contribution per unit
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Variance formula
Variance = Actual – Budget
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Gross profit formula
Gross profit = Sales revenue minus cost of sales
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Operating profit formula
Operating profit = Gross profit minus overheads
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Net profit formula
Net profit = Operating Profit +/- finance costs
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Gross profit margin
Gross profit margin = (Gross profit / Sales revenue) x 100
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Operating profit margin
Operating profit margin = (Operating profit/ Sales revenue) x 100
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Profit for the year (net profit) margin formula
Profit for the year (net profit) margin = (Profit for the year / Sales revenue) x 100
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Current ratio formula
Current ratio = Current assets/ current liabilities
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Acid test ratio
Acid test ratio = (Current assets – stock) / current liabilities
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Labour productivity formula
Productivity (labour) = Output per period (units)/ Number of employees in that period
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Capacity utilisation
Capacity utilisation = (Actual level of output/ Maximum possible output) x 100
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## Other cards in this set

### Card 2

#### Front

Price elasticity of demand

#### Back

Price elasticity of demand = (% Change in quantity demanded / % Change in price

### Card 3

#### Front

Income elasticity of demand formula

### Card 4

#### Front

Net cash flow formula

### Card 5

#### Front

Sales volume formula

## Comments

Report

what an epic set on cards, dude.

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