alevel business formulae

• 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

  1 LUXARY / 0 NORMAL / -1 INFERIOR
• 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