Buisness AS Equations

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Total Costs
Fixed costs + Variable costs
1 of 32
Profit (Revenue)
Sales Revenue - Total costs
2 of 32
Profit (Contribution)
Total contribution - Fixed costs
3 of 32
(Total) Variable costs
Variable cost per unit x Units sold
4 of 32
Sales Revenue (Turnover)
Selling price x units sold
5 of 32
Market Capitalisation
Number of Shares issued x Current share price
6 of 32
Market Size (Volume)
Quantity in a Time period
7 of 32
Market Size (Value)
Sales Revenue x Time period
8 of 32
Sales Volume
Quantity in a Time Period
9 of 32
Market Growth (%) (1 Year)
(Change between two years / Size of market that year) x 100
10 of 32
Sales Growth (%) (1 Year)
Change between two years / Total sales in the market that year) x 100
11 of 32
Sales Value
Total Sales Revenue in a Time Period
12 of 32
Market Share (%)
(Sales of a product / Total sales in the market) x 100
13 of 32
Price Elasticity of Demand (PED)
% Change in Demand / % Change in Price (inelastic-between 0 and 1)
14 of 32
Income Elasticity of Demand (YED)
% Change in Demand / % Change in Income
15 of 32
Added Value
Sales Revenue - Costs of product being produced
16 of 32
Labour Productivity
Output per time period / Number of Employees
17 of 32
Unit Costs
Total costs of production / Number of output produced
18 of 32
Capacity Utilisation (%)
(Actual output in a given time period / Maximum output) x 100
19 of 32
Gross Profit
Sales Reveune - Cost of Sales
20 of 32
Operating Profits
Sales Revenue - (Cost of Sales + Operating Costs)
21 of 32
Net Profit
(Operating profit + Other profits) - (Net finance costs + Tax)
22 of 32
Varience
difference between actual and budgeted figures
23 of 32
Contirbution per unit
Selling Price - Variance Costs per unit
24 of 32
Total Contribution (Contribution)
Contribution per unit x Units produced or sold
25 of 32
Total Contribution (Revenue)
Total Revenue - Total Variable costs
26 of 32
Break Even
Fixed Costs / Contribution per unit
27 of 32
Break Even Output
Total Revenue = Total Costs
28 of 32
Margin of Saftey
Actual level of output - Break Even
29 of 32
Gross Profit Margin (%)
(Gross Profit / Sales Revenue) x 100
30 of 32
Operating Profit Margin %
(Operating Profit / Sales Revenue) x 100
31 of 32
Net Profit Margin (Yearly Profit)
(Net Profit / Sales Revenue) x 100
32 of 32

Other cards in this set

Card 2

Front

Sales Revenue - Total costs

Back

Profit (Revenue)

Card 3

Front

Total contribution - Fixed costs

Back

Preview of the back of card 3

Card 4

Front

Variable cost per unit x Units sold

Back

Preview of the back of card 4

Card 5

Front

Selling price x units sold

Back

Preview of the back of card 5
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