Business Calculations

• Total Revenue:

  Selling price per unit x Quantity sold
• Profit:

  Total Revenue - Total Costs
• Total Variable Cost:

  Variable cost per unit x Quantity sold
• Total cost:

  Fixed cost x Total Variable cost
• Market Capitalization:

  Current share price x Number of issued shared
• Expected Value:

  (Outcome A x Probability A) + (Outcome B x Probability B)
• Net Gain:

  Expected Value - Initial cost of decision
• Market Share:

  Sales of Business / Total Market share ] x 100
• Market Growth:

  Market size (year 2) - Market size (year 1) / Market size (year 1)] x 100
• Price Elasticity of Demand:

  % change in quantity demanded / % change in price
• Income elasticity of demand:

  % change of quantity demanded / % change in income
• Sales Growth:

  (Current sales - Previous sales / Previous sales) ] x 100
• Added Value:

  Sales revenue - Costs of brought-in goods and services
• Labour productivity:

  Output over a period of time / Number of employees
• Unit Costs (average costs)

  Total costs / Number of units of output
• Capacity utilisation (%):


  Actual output / Maximum possible output ] x 100
• Return on Investment:

  Profit from the investment (£) / Cost of the investment (£) ] x 100
• Gross Profit:

  Revenue - Cost of Sales
• Profit from Operations = Operating profit:


  Gross Profit (Sales revenue - Cost of Sales) - Operating Expenses
• Profit for year:

  Operating profit + Profit from other activities - Net finance costs - Tax
• Gross Profit Margin:

  ( Gross Profit of Year / Revenue ) x 100
• Profit of The Year Margin:

  ( Profit of the year / Revenue ) x100
• Market Size?

  Sales / Market Share ] x 100
• Fixed Costs?

  Revenue - (Total Variable Cost - Profit)
• Break Even Point?

  Fixed Costs / (Sales price per unit -Variable costs per unit)
• Operating profit ?


  Sales revenue - Cost of Sales - Expenses
• Total Contribution?


  Total Revenue - Variable Costs
• Added value?


  Sales revenue - Costs of brought in goods or services