formula in business

• Market share = sales of a business / total sales in the market x100
• PED = % change in quantity demanded / % change in price
• YED = % change in quantity demanded / % change in income
• Break even = Total fixed cost - contributions per unit
• Contribution per unit = selling price - variable costs per unit
• Total contributions = contributions x number of units sold
• Margin of safety = total output - break even point
• Gross profit = sales revenue - cost of sales
• Gp margin = expenses / sales revenue x 100
• Operating profit = gp - expenses
• Op margin = op / sales revenue x 100
• profit = total revenue - total costs
• Net profit = op- interest tax
• Np margin = np / sales revenue x 100
• Working capital = current assets - current liabilities
• Productivity =output /input
• Labour productivity = output / number of workers
• Labour turnover = Number of employees leaving the business / average number of employees x 100
• Absenteeism = number days off / total possible work days x 100
• Sales volume = sales revenue / price
• Sales revenue = price x quantity
• Total costs = fixed costs + variable costs
• Total variable cost =total cost - fixed cost
• Average variable cost = variable cost / output
• Variance = actual figure - budgeted figure
• Current ratio = current assets / current liabilities
• Acid test ratio = current asset -stock / current liabilities
• Capacity utilisation = actual output/ max output x 100
• Gearing ratio = non current liabilities/capital employed x 100
• ROCE = operating profit / capital employed x 100
• Capital employed = total equity + non-current liabilities
• Payback period = net cash flow then outflow - inflow then left over amount / final year payment
• ARR= average annual return /investment
• AAR =all in flow - outflows /year
• Expected value = estimated financial affect x profitability
• Net gain = expected value - cost associated
• Net present value = cash flow x discount flow