Business Alevel Calculations

Theme 1, Theme 2

Percentage change

$$\frac{\operatorname{ch}ange}{oldfigure}\cdot100$$

Market growth

$$currentsize\cdot\left(1+\left(\frac{\%grow\operatorname{th}}{100}\right)\right)$$

Price elasticity of demand

$$PED=\frac{\%\operatorname{ch}angeQD}{\%\operatorname{ch}angeP}$$

Income elasticity of demand

$$YED=\frac{\%\operatorname{ch}angeQD}{\%\operatorname{ch}angeY}$$

Total revenue

Sales price x quantity

Total variable costs

Variable cost per unit x quantity

Total costs

Total variable costs + total fixed cost

Net cash flow

Inflows - outflows

Opening balance

Closing balance from previous month

Closing balance

Opening balance that month + net cash flow

Contribution per unit

Sales price – variable cost per unit

Break even output

$$\frac{Totalfixed\cos t}{contributionperunit}$$

Total contribution

Contribution per unit x quantity

Margin of safety

Actual/forecast output – break even output

Profit

Total revenue - total csts

Variance

Actual figures - budgeted figures

Gross Profit margin

Gross profit/ Revenue x 100

Acid test ratio

Current assets - stock/current liabilities

Operating profit margin

Operating profit/revenue x 100

Sales revenue

Price x quantity

Current ratio

Current assets/current liabilites

Gross profit

Revenues - cost of sales

Working capital

Current assests - current iabilities

Net profit margin

Net profit/ Revenue x 100

Sales volume

Sales revenue/ price

Operating profit

Gross profit - operating expenses

Net profit

Operating profit - interest

Break even

Fixed costs / contribution

Contribution

Selling price per unit - Variable cost per unit

Market share

Firms sales/Total market sales x 100

Cost plus pricing mark-up

Cost per item + (Mark up x unit cost)

Capacity utilisation

Actual output/Maximum possible output x 100