Business studies year 1

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Market share
= (Sales of a product or business/ Total market sales) x 100
1 of 22
Price elasticity of demand =
Change in quantity demanded/ % Change in price
2 of 22
Income elasticity of demand =
Change in quantity demanded/ % Change in income
3 of 22
Net cash flow =
Total inflows – Total outflows
4 of 22
Sales volume =
total number of units sold over a period of time
5 of 22
Sales revenue =
number of units sold x unit price
6 of 22
Total variable costs =
number of units sold x variable cost per unit
7 of 22
Total costs =
Fixed costs + variable costs
8 of 22
Contribution per unit =
Selling price per unit – Variable cost per unit
9 of 22
Total contribution =
Contribution per unit x Number of units sold
10 of 22
Break-even =
Fixed costs/ Contribution per unit
11 of 22
Variance
Actual - Budget (favorable or Adverse)
12 of 22
Gross profit =
Sales revenue minus cost of sales
13 of 22
Operating profit =
Gross profit minus overheads
14 of 22
Net profit =
Operating Profit +/- finance costs
15 of 22
Gross profit margin =
(Gross profit / Sales revenue) x 100
16 of 22
Operating profit margin =
= (Operating profit/ Sales revenue) x 100
17 of 22
Profit for the year (net profit) margin =
(Profit for the year / Sales revenue) x 100
18 of 22
Current ratio =
Current assets/ current liabilities
19 of 22
Acid test ratio =
(Current assets – stock) / current liabilities)
20 of 22
Productivity (labour) =
Output per period (units)/ Number of employees in that period
21 of 22
Capacity utilisation =
(Actual level of output/ Maximum possible output) x 100
22 of 22

Other cards in this set

Card 2

Front

Price elasticity of demand =

Back

Change in quantity demanded/ % Change in price

Card 3

Front

Income elasticity of demand =

Back

Preview of the front of card 3

Card 4

Front

Net cash flow =

Back

Preview of the front of card 4

Card 5

Front

Sales volume =

Back

Preview of the front of card 5
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