formulas

• Total Contribution


  Total Revenue - Total Variable Costs
• Contribution Per Unit: Selling Price(per unit) - Variable Cost(per unit)
• Break Even Point


  Fixed Costs ∻ Contribution Per Unit
• Margin of Safety: Actual level of Output - Breakeven level of Output
• Market Size(VOLUME): Is the quantity of goods & services produced in a particular market over a period of time (1 year)
• Market Size(VALUE): Is the total sales revenue generated from selling all of the good & services produced in a particular market over a period of time ( 1 year)
• Sales Volume: Is the quantity of goods & services produced by a particular business over a period of time ( 1 year)
• Sales Value: Is the total sales revenue of a particular business over a period of time ( 1 year)
• Market Growth % in year X: Change in size of the market between year (x-1) and year x ∻ Size of market in yr (x-1)
• Market Share %: Sales of one product/brand/business ∻ Total Sales in Market x 100
• Sales Growth % in year X: Change in sales of product/business between yr (X-1) and yr X ∻ Sales of product/business in yr (X-1)
• Total Costs


  Fixed Costs + Variable Costs
• Variable Costs(TOTAL VARIABLE COSTS): Variable Cost Per Unit x N.O Units Sold
• Total Revenue(SALES REVENUE/TURNOVER): Selling Price Per Unit x N.O Units Sold
• Market Capitalisation


  N.O Issued Shares x Current Share Price
• Price Elasticity of Demand (PED): % Change in quantity Demand ∻ % Change in Price

  PRICE ELASTIC =

  
  

  PRICE INELASTIC =
• Income Elasticity of Demand (IED): % change in Income ∻ % change price
• Added Value(VALUE ADDED): Sales Revenue - Costs of bought in goods & services
• Labour Productivity


  Output Per Time Period ∻ N.O Employees
• Labour Turnover %: N.O Staff leaving during yr ∻ Average N.O Staff employed by business during yr x 100
• Capacity Utilisation: Actual Output in given time period ∻ Maximum Possible Output in given time period x 100
• Unit Costs: Total Costs Of Production ∻ N.O Units of Ouput Produced
• Return On Investment (ROCE): Return On Investment £ ∻ Cost Of The Investment £ x 100
• Gross Profit


  Sales Revenue - Cost Of Sales
• Gross Profit Margin %: Gross Profit ∻ Sales Revenue x 100
• Profit From Operations (OPERATING PROFIT): Sales Revenue - Cost Of Sales - Operating Expenses
• Operating Profit Margin % (PROFIT FROM OPERATING MARGIN): Profit for Yr ∻ Sales Revenue x 100
• Profit for Year: Operating Profit + Profit From Other Activities - Net Finance - Tax
• Profit for Year Margin %: Profit for Yr ∻ Sales Revenue x 100
• Variance


  Actual - Budgeted figure
• Labour Cost Per Unit: Labour Costs ∻ Units of Output
• Current Ratio :


  Current Assets ∻ Current Liabilities
• Gearing Ratio %: Non-Current Liabilities ∻ Total Equity + Non-Current Liabilities
• Payables Days


  Payables ∻ Cost of Sales x 365
• Receivables Days


  Receivables ∻ Sales Revenue x 365
• Average Rate of Return (ARR) %: Net Return from Project £ / N.O Yrs ∻ Initial Cost of Project x 100
• Inventory Turnover: Cost of Goods Sold ∻ Average Inventories Held