A Level Edexcel Business Formulas

• Market Share


  (Business Sales / Total Sales in the market) x 100
• PED


  % Change in Quantity Demanded / % Change in Price
• YED


  % Change in Quantity Demanded / % Change in Income
• Percentage Change


  (New - Old / Old ) x 100
• Contribution/unit


  Selling price - variable cost
• Break-even


  Fixed costs / contribution per unit
• Margin of Safety


  Total Sales - Break Even point
• Sales revenue


  Selling price x quantity
• Sales volume


  Sales revenue/price
• Total Costs


  Fixed Costs + Variable Costs
• Total Variable Costs


  Total Costs - Fixed Costs
• Totai Variable Costs


  Average Variable Costs x output
• Total Fixed Costs


  Total Costs - Variable Costs
• Gross profit


  Sales revenue - cost of goods sold
• Operating profit


  Gross profit - admin expenses (overheads)
• Net profit


  Operating profit - Interest/tax
• Profit margin

  Any profit/ sales revenue x 100
• Profit


  Total Revenue - Total Costs
• Working capital


  Current assets - current liabilities
• Current ratio


  Current assets/current liabilities
• Acid test ratio


  Current assets - stock/current liabilities
• Capacity Utilisation


  (Actual Output / Maximum Output) x 100
• Capital Productivity


  Output per time period / number of machines
• Capital employed


  Total equity + non-current liabilities
• ROCE


  Operating profit / Capital employed x 100
• Gearing


  Non-current Uabilities/Capital employed x 100
• Absenteeism


  (Number of days lost through absence / total possible days worked) x 100
• Output


  Output per time period / input per time period
• Labour


  Output / number of workers or hours worked
• Labour Turnover


  Number of employees leaving / average number of employees x 100