Key calculations and formulas

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Revenue
Number of units sold x price
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Total costs
Fixed costs + variable costs
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Profit
Total revenue - total costs (or contribution) - fixed costs
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Market capitalisation
Current share price x number of outstanding shares
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Expected value
Profitability x outcome
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Net gain
Expected value - cost of decision
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Market growth
(change in market sales over a period of time/original market sales) x 100
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Sales growth
(change in sales over a period of time/original sales) x 100
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Market Share
(Sales of a product or business / total market sales) x 100
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Price elasticity of demand
% change in quantity demanded / % change in price
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Income elasticity of demand
% change in quantity demanded / % change in income
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Labour productivity
Output per period (units) / number of employees
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Unit costs
Total production costs / number of units produced
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Capacity utilisation
(actual level of output / maximum possible output) x 100
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Varience
Actual - budget
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Contribution per unit
Selling price per unit - variable cost per unit
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Total contribution
Contribution per unit x number of units sold
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Break-even
Fixed costs / contribution per unit
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Gross profit margin
(operating profit / sales revenue) x 100
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Profit for the year margin
(profit for the year / sales revenue) x 100
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Net cash flow
Total inflows - total outflows
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Labour turnover
(number of employees leving during perion / number of employeed employed during period) x 100
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Retention rates
((number of employees during period - number of leavers during period) / number of employees during period) x 100
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Labour productivity
Output per period (units) / number of employees
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Employee costs as a % of turnover
(total employee cost / total turnover) x 100
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Labour cost per unit
Labour cost / units produced
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Other cards in this set

Card 2

Front

Fixed costs + variable costs

Back

Total costs

Card 3

Front

Total revenue - total costs (or contribution) - fixed costs

Back

Preview of the back of card 3

Card 4

Front

Current share price x number of outstanding shares

Back

Preview of the back of card 4

Card 5

Front

Profitability x outcome

Back

Preview of the back of card 5
View more cards

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