Business Formulas Unit 1 & 2

jeffjordan97's version from 2015-05-09 11:31

Section 1

Question Answer
Profit=total sales revenue - total costs
Price Elasticity of Demand =% change in quantity demanded / % change in price
Contribution =Total sales revenue - Variable costs
Break Even Output =Fixed costs / Contribution per unit
Contribution per unit =Selling price - variable costs
Margin of safety =Actual sales - Break even output
Budgeted sales =selling price x expected output sold
Net Cash Flow =Cash inflows - Cash outflows

Section 2

Question Answer
Variance =Actual figures - budgeted figures
Net Profit Margin =(Net profit / sales revenue) x 100
Net Profit =Total revenue - Total costs
Labour Turnover =(Number of employees leaving / number employed) x 100
Labour Productivity =Output / number of employees
Labour costs per unit of output = Total Labour costs / output
UK productivity =Total value of UK output / Total UK hours worked
Absenteeism =(Number of absent staff / Number employed) x 100
Cpapcity Utilisation =(Actual output / Maximum output) x 100
Unit costs =Total costs / output
What's the difference between Gross and Net pay?Gross = before deduction ( Net = after
Market Share(business market share / total market worth) x 100

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