equations business

• profit


  total revenue minus total cost
• break even


  Fixed costs / contribution per unit
• contribution


  total sales - total variable costs
• CPU


  selling price per unit- variable costs per unit
• margin of safety


  Actual level of output - Breakeven level of output
• labour turnover


  (Number of staff leaving / average number of staff employed) x 100
• Employee retention rate


  Number of employees at end of period - Number of leavers / Number of employees at end of period x 100
• Labour productivity


  Output per time period / number of employees
• Employee costs as a percentage of turnover


  Employee costs / sales revenue x 100
• labour costs per unit

  Labour costs / units of output
• market capitalisation formula


  Current share price X total number of shares issued
• index number formula


  (current price/base year price) x 100
• average unit cost formula


  total cost/output
• capacity utilisation formula


  Current output/maximum possible output x 100
• reorder quantity formula


  lead time x average daily usage
• reorder level formula


  re order quantity + minimum stock level
• sales and market growth formula


  new- old/ old x100
• market share formula


  Sales/Total Market Sales X 100
• PED formula


  % change in Qd / % change in P
• YED formula


  % change in quantity demanded / % change in income
• working capital


  current assets - current liabilities
• Current Ratio Formula

  Current Assets / Current Liabilities
• Gross Profit margin


  Gross profit/sales revenue x 100
• operating profit margin


  Operating profit / sales revenue x 100
• return on capital employed


  Operating profit / capital employed x 100
• capital employed formula


  Total equity + non current liabilities
• total costs


  fixed costs + variable costs
• decision tree- net gain


  Expected value - initial cost of decision
• added value


  revenue- cost of goods
• gross profit


  Revenue - cost of sales
• gearing


  Non-current liabilities / capital employed x 100
• payable days


  (Payables / cost of sales) x 365
• receivable days


  Recievables / Sales revenue x 365
• average rate of return

  Average annual profit / Cost of investment x 100