Formulas

Created by

Aqsa

Cards (31)

Total cost 
Fixed cost+ variable cost
Profit 
Total revenue- total cost
Total variable cost 
Variable cost x quantity
Total revenue 
Price x quantity
Expected value of decision tree 
Probability x sales
Net gain of decision tree 
Expected value- cost
Market size volume 
Number of units sold in a market
Market size value 
Total revenue generated from all products sold in a market
Sales volume 
Products sold in a market
Sales value 
Total sales revenue of a business
Market growth % in year x
Year 2-Year 1/ Year 1 x 100
Sales growth % in year x
Year 2- Year 1 / Year 1 x 100
Market share % 
Sales of a business/ total market sales x 100
Price elasticity of demand 
% change in quantity demanded/ % change in price
Added value 
Difference between selling price of a product and what a business spends to produce its goods and services
Labour productivity 
Output produced/ number of employees
Unit costs/ average costs
Total cost/ number of units of output
Capacity utilisation % 
Actual output/ full capacity x 100
Return on investment % 
Return on investment/ cost of investment x 100
Rate of return on investment 
Return/ Investment cost x 100
Gross profit 
Sales revenue - cost of sales
Operating profit/ profit from operations
Gross profit- operating expenses
Profit for year 
Operating profit + profit from other activities - net finance cost - tax
Variance 
Difference between actual output and budgeted output
Contribution per unit 
Selling price- variable cost per unit
Total contribution 
Contribution per unit x number of units sold or Total revenue - Total variable cost
Break even output 
Fixed cost/ contribution per unit
Margin of safety 
Actual level of output- break even level of ouput
Gross profit margin %
Gross profit/ sales revenue x 100
Operating profit margin % 
Operating profit/ sales revenue x 100
Profit for year margin % 
Profit for year/ sales revenue x 100